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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Canadian Dollar (CAD) Spikes as Bank of Canada (BoC) Tapers QE

Canadian Dollar (CAD) Spikes as Bank of Canada (BoC) Tapers QE

Justin McQueen,

CAD Price Analysis & News

  • Canadian Dollar Spikes on Hawkish BoC
  • QE Tapered
  • Inflation Seen at Target in H2 2022

QE TAPER: The Bank of Canada left the overnight rate unchanged as expected. However, more importantly, the BoC tapered its QE purchases to C$ 3bln/week from the prior of C$ 4bln. Now while this would have been a near certainty a few weeks ago, the recent rise in Covid cases had cast doubt on this action taking place and hence the Canadian Dollar has jumped on the move. As a reminder, I highlighted earlier that risks to CAD had been asymmetrically tilted to the upside, given that fast money accounts were bearish CAD (long USD/CAD) heading into the meeting.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Justin McQueen
Trading Forex News: The Strategy
Get My Guide

OUTLOOK: The BoC’s outlook was also notably hawkish with the central bank expecting economic slack to be absorbed in 2022 and as a result sees inflation returning sustainably to its target H2 2022, having previously expected to reach this in 2023.


Source: BoC


Brent close to $65 (Prior $50)WTI close to $60 (Prior $50)WCS close to $50 (Prior $35)


Source: Refinitiv

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