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
Real Time News
  • Tonight will see Chinese markets open after a two day closure to observe mid-Autumn festival. Naturally, there will be increased focus and volatility given the current backdrop of Evergrande default concerns. Get your market update from @JMcQueenFX here:https://t.co/ky6vpyMup7 https://t.co/7TyDu8rl14
  • RT @RiskReversal: A pretty hot @MacroSetup this week, brought to you by @Nadex and @openexc. @GuyAdami & I warn the young, but mighty @CVec…
  • RT @Nadex: The Macro Setup is back! CNBC’s @GuyAdami, @RiskReversal, and special guest @CVecchioFX discuss: -Evergrande vol hurts everlong…
  • Japanese #Yen Forecast: $USDJPY Breakout Imminent- #FOMC Levels - https://t.co/U5iFDDlWPT https://t.co/f1thUfTOg6
  • RT @BrendanFaganFx: 78 counterparties take $1.240 trillion at Fed's fixed-rate reverse repo $USD $DXY https://t.co/IOcumNHCmc
  • here we go - starting right now https://www.dailyfx.com/webinars/643096611 https://t.co/SBRIykorY8
  • SEC Chair Gensler: - Working with Congress on crypto would help - A large number of crypto investors could be harmed
  • Pre-FOMC US Dollar Price Action Setups: EUR/USD, GBP/USD, USD/JPY https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/21/Pre-FOMC-US-Dollar-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD-USD-JPY-USDJPY.html https://t.co/Vyj5hwVXpi
  • The big question is whether the Fed announces taper tomorrow or whether they punt that announcement to the November rate decision, waiting for employment data to improve to the point of ‘significant further progress. More market update from @JStanleyFX :https://t.co/tPoLyqNFc1 https://t.co/o3ES0KKlWr
  • SEC Chair Gensler: - The market is in a better position to absorb global shocks - Securities rules give the SEC great power over crypto
USD/CAD Erratic Price Action After Bank of Canada Emergency Rate Cut

USD/CAD Erratic Price Action After Bank of Canada Emergency Rate Cut

Nick Cawley, Strategist

USD/CAD Price, News and Analysis:

  • USD/CAD swings after BoC cuts rates by 50 basis points.
  • Central Bank buying government bonds and commercial paper.

Bank of Canada Lowers Overnight Target Rate to 0.25% From 0.75%

The Bank of Canada cut 50 basis points off its overnight rate today, leaving the rate at its effective lower bound of 0.25%, due to debilitating effects of the coronavirus and the sharp decline in the price of oil. The BoC also announced two new programs, buying commercial paper and government securities in the secondary market, with purchases set at a minimum of CAD5 billion a week across the yield curve.

Bank of Canada Emergency Rate Cut

In a statement later, BoC governor Stephen Poloz said that the new bond buying programs will be kept going ‘until it’s clear the economic recovery is well underway’ and added that the central bank stands ready to ‘take further action as required to support the Canadian economy and its financial system to keep inflation on target’.

USD/CAD moved lower on the announcement before picking back up in choppy trade.

For all market moving data and events please the DailyFX calendar

USD/CAD Five Minute Price Chart (March 27, 2020)

USD/CAD Erratic Price Action After Bank of Canada Emergency Rate Cut

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on USD/CAD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES