CAD

The 50 bp cut from the Bank of Canada was well priced-in ahead of this morning’s announcement, and several longer-term resistance levels sit overhead around 1.3900, 1.3950 and 1.4000.

Large speculators flipped to net-short exposure to EUR/USD ahead of the French election. Open interest on CAD futures fell at its fastest pace in nearly one year as the sentiment extreme we warned of plays out. Net-long exposure to AUD/USD futures fell to a 3-year low, and prospects of net-long exposure are now on the horizon with the potential for an RBA hike.

Today's BOC rate decision and an ISM report for the US places USD/CAD on volatility alert, alongside USD/JPY.

Asset managers reached a record level of net-short exposure to VIX futures, days before prices fell to a record low. Traders also remain net-long USD despite losses in recent weeks.

As with any central bank, when the Bank of Canada (BOC) changes interest rates, it can have a knock-on effect to stocks, indices and currencies. Find out everything you need to know about the BOC and how it’s decisions impact financial markets.

USD/CAD is forming a potential descending triangle pattern into 1.3650 support ahead of key data tomorrow.

In the wake of the implosion of SVB, traders are dialing down their expectations for Fed hawkishness next week...

The just-released Consumer Price Index (CPI) in Canada rose 5.9% year-over-year in January...what does that mean for USD/CAD?

A fiat currency is a monetary instrument backed by a national government like the British pound or Canadian dollar. Learn how fiat currencies operate and how they compare to other types of money.

The bank's latest forecast shows the annual rate of inflation slowing to around 3% by the middle of 2023, and reaching 2.5% by the fourth quarter.

Market pricing and the consensus among economists firmly points towards a 25bp hike from the BOC tomorrow.