This week USDCAD experienced a significant decline, extending the previous week's decline. Yesterday the price drew a long body bearish candlestick indicating a strong decline forming a high of 1.35363 and a low of 1.34783 on FXOpen's chart. The price draws a bearish candlestick body along the middle band point to the lower band.
Recently, Bank of Canada (BoC) Governor Tiff Macklem stated that core inflation would continue to ease as expected and the inflation rate would get closer to the target of 2%, and keep inflation in the range of 1%-3%. Furthermore, there is a possibility that the BoC will reduce interest rates if all the incoming data supports a cut. The next decision is scheduled for October 23.
Market analysts now forecasted the possibility of interest rate cuts of 25 basis points at the next seven meetings. Since June the BOC has lowered interest rates in the last three decisions with a cumulative drop of 75 basis points to 4.25%.
Today, although there is no high impact category news schedule for the Canadian Dollar, traders may pay attention to data on US new home sales and Crude oil inventories.
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Recently, Bank of Canada (BoC) Governor Tiff Macklem stated that core inflation would continue to ease as expected and the inflation rate would get closer to the target of 2%, and keep inflation in the range of 1%-3%. Furthermore, there is a possibility that the BoC will reduce interest rates if all the incoming data supports a cut. The next decision is scheduled for October 23.
Market analysts now forecasted the possibility of interest rate cuts of 25 basis points at the next seven meetings. Since June the BOC has lowered interest rates in the last three decisions with a cumulative drop of 75 basis points to 4.25%.
Today, although there is no high impact category news schedule for the Canadian Dollar, traders may pay attention to data on US new home sales and Crude oil inventories.
View attachment 7611
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