Canadian dollar traders are preparing for yet another busy day, with the unique proposition of both sides of the currency equation having interest rate decisions that could propel the currency pair hundreds of points in the coming session. The Bank of Canada is firmly expected to cut rates by a further 25 basis points at this meeting, which could put additional pressure on the Canadian dollar, now sitting just below multi-year lows against the USD—levels it reached just over a week ago.
The real catalyst for bigger moves should come from the statement, Policy Report, and subsequent press conference. Anything more dovish than expected is likely to see those levels challenged swiftly, whereas less dovish guidance should see the pair fall back into range. Traders will be aware that the Fed’s decision follows just a few hours later, making the Bank of Canada opportunity more short-term than usual. However, if the FX gods align and both central banks push in the same direction, there is potential for significant percentage moves in the pair today.
Resistance 2: 1.4514 – 2025 High
Resistance 1: 1.4421 – Trendline Resistance and Overnight High
Support 1: 1.4324 – Trendline Support
Support 2: 1.4259 – 2025 Low
