- Analytics
- News and Tools
- Market News
- USD/CAD tumbles to four-week lows near 1.3320 after BoC surprise interest rate hike
USD/CAD tumbles to four-week lows near 1.3320 after BoC surprise interest rate hike
- Bank of Canada raises policy rate by 25 basis points to 4.75%.
- Loonie jumps across the board following the decision.
- USD/CAD approaching April and May lows.
The USD/CAD plummet toward 1.3300 following the decision of the Bank of Canada (BoC) to raise its key interest rate taking markets off guard. The Loonie is outperforming on the back of the BoC decision.
The BoC raised interest rates by 25 basis points to 4.75%, against market consensus. In its statement, the central bank mentioned increasing concerns about the Consumer Price Index inflation getting “stuck materially above the 2% target”.
The BoC's decision follows an unexpected rate hike from the Reserve Bank of Australia (RBA) on Tuesday and comes ahead of next week’s decisions from the Federal Reserve, the European Central Bank, and the Bank of Japan.
Before the announcement, the USD/CAD was trading around 1.3390, but it quickly dropped to 1.3319, reaching the lowest level since May 8. The bias for the pair is clearly to the downside, moving towards critical medium-term support levels. It is approaching the April and May-June lows at 1.3299 and 1.3314, respectively. The next support area is the January lows around 1.3360.
USD/CAD daily chart
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
