As anticipated, the Bank of Canada reduced by 50 basis points. The goal of the central bank is to keep inflation close to 2%. The goal is to boost growth while keeping inflation moderate and steady. The CPI prediction for 2024 and 2025 was downgraded by the central bank. Additionally, core inflation was reduced.
Although there hasn’t been much technical movement in the price, the peak of the swing area that was previously mentioned in a separate post has managed to retain resistance at 1.38475. The swing area’s low, at 1.38337, has also changed. Both buyers and sellers are engaged in a fierce battle and eagerly await the next opportunity.

CAD holds near-fair value on wider US/Can spreads
After yield spreads expanded in favor of the USD last week, the CAD’s surge to the low 1.34 region has gradually reversed. At the moment, the CAD is still primarily range-bound between the low/mid 1.34s and the mid-1.36s. Today, the spot is trading near its estimated fair value of 1.3546.
About half of the most recent September decline in USDCAD from the 1.3647 top has been recovered by steady USD advances from last week’s low. Although momentum appears to be modest, it is leaning USD-bullish. The wider, sideways range trade in the spot below 1.3650 is probably going to hold up for the time being, although further USD gains could be probable soon into the upper 1.35 level.