The BOC cut rates by -25 basis points to 4.25%. BOC’s Macklem said that it is reasonable to expect further rate cuts in our policy rate, but warned that inflation may bump up later in the year.
The USDCAD has moved modestly lower after the rate decision. That move takes the price farther from the 50% of the move up from the December 2023 low at 1.35612. The high price today reached 1.3565 just above that level.
There is a swing area between 1.3526 to 1.35428 which is being tested on the downside now. Move below – and stay below – would have traders looking toward 1.3455 to 1.3477 area.