Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USDCAD Lifts on Emergency Bank of Canada Rate Cut

USDCAD Lifts on Emergency Bank of Canada Rate Cut

Thomas Westwater, Analyst

BOC Rate Cut Talking Points:

  • The Bank of Canada cut its overnight rate target to 0.75 percent from 1.25 percent
  • USDCAD pushed higher as news of the cut crossed the wires
  • BOC’s Poloz states “Lower rates to support consumer confidence”

The Bank of Canada cut its overnight interest rate by 50 basis points Friday afternoon in an emergency rate cut to respond to the fallout from COVID-19. Bank of Canada’s Governor Stephen Poloz stated this cut will help consumer confidence. The emergency cut from the BOC follows last weeks emergency rate cut from the Federal Reserve. USDCAD lifted above 13970.0 as the news crossed the wires.

USDCAD (1-Min Chart)

USDCAD Rate cut chart BOC

Source: IG

USD/CAD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 17% 11% 13%
Weekly 25% -2% 6%
Current retail sentiment in USD/CAD
Get My Guide

Along with the emergency rate cut, Poloz said that the BOC will roll out a new banker purchase facility along with lowering the bank stability buffer by 125 basis points. Willingness from central bankers to combat fallout from the novel coronavirus is now palpable, but many policy makers agree that an appropriate fiscal response will also be required to support economic strength.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES