The USDCAD pair is above the EMA200 and EMA50 on the 4-hour timeframe and is moving in a range. As long as the pair is in this range, the best thing to do is to sell at the top and buy at the bottom. A break of this range to the top or bottom will allow us to continue its rise and fall.
The Bank of Canada has announced its decision to lower the policy interest rate to 3% after six consecutive reductions. Additionally, it confirmed the end of quantitative tightening (QT) and the gradual resumption of asset purchases starting in March. These measures reflect the central bank’s effort to stabilize the economy and support sustainable growth.
The Bank of Canada emphasized three key points:
• Inflation has approached the 2% target. After a period of high volatility, inflation expectations have moderated, and price pressures—except in the housing sector—have eased.
• Lower interest rates have increased household spending power and gradually boosted economic activity, particularly in the housing sector and durable goods purchases such as automobiles.
• New U.S. trade policies remain a significant risk to Canada’s economy. Any escalation in trade tensions could negatively impact economic growth.
One of the first sectors to benefit from the rate cut is the housing market.Lower borrowing costs are expected to attract new buyers; however, the central bank anticipates a more balanced increase in housing prices over time. The recent slowdown in construction activity and declining rental prices indicate that investment appeal in this sector has somewhat diminished.
For investors and entrepreneurs, the lower interest rates present an opportunity to secure cheaper financing and expand their businesses. Sectors such as startups, technology, and export-driven manufacturing are expected to gain the most from this policy.
With inflation stabilizing around 2% and the economy recovering, the Bank of Canada sees no immediate need for further rate cuts. However, potential economic disruptions from U.S. trade policies could alter this outlook.
Reports suggest that if U.S. President Donald Trump proceeds with a proposed 25% tariff on Canadian imports, the Canadian government plans to implement financial aid measures similar to those used during the COVID-19 pandemic. However, these programs require parliamentary approval, and given that the Liberal government lacks a parliamentary majority, there is no guarantee they will pass.
All opposition parties have expressed their intent to oust the current government, meaning any economic stimulus package would require support from the New Democratic Party (NDP). The NDP has backed the Liberal government over the past three years. The Canadian Parliament is currently adjourned until March 24, allowing the Liberal Party to select a new leader to replace Justin Trudeau, with Mark Carney as a likely successor. However, an early leadership decision may occur before the scheduled date.
Tiff Macklem, Governor of the Bank of Canada, stated that household debt is not a sustainable driver of consumption growth. He expressed greater concern about declining business investment due to tariff threats, arguing that such policies could have a more significant impact on the Canadian dollar than interest rate differentials.
He also reaffirmed that the Bank of Canada believes inflation has been successfully contained. The central bank aims to ensure that any CPI increases resulting from tariffs remain temporary and that the consequences of trade policies are managed to minimize sudden economic disruptions.
The Bank of Canada has announced its decision to lower the policy interest rate to 3% after six consecutive reductions. Additionally, it confirmed the end of quantitative tightening (QT) and the gradual resumption of asset purchases starting in March. These measures reflect the central bank’s effort to stabilize the economy and support sustainable growth.
The Bank of Canada emphasized three key points:
• Inflation has approached the 2% target. After a period of high volatility, inflation expectations have moderated, and price pressures—except in the housing sector—have eased.
• Lower interest rates have increased household spending power and gradually boosted economic activity, particularly in the housing sector and durable goods purchases such as automobiles.
• New U.S. trade policies remain a significant risk to Canada’s economy. Any escalation in trade tensions could negatively impact economic growth.
One of the first sectors to benefit from the rate cut is the housing market.Lower borrowing costs are expected to attract new buyers; however, the central bank anticipates a more balanced increase in housing prices over time. The recent slowdown in construction activity and declining rental prices indicate that investment appeal in this sector has somewhat diminished.
For investors and entrepreneurs, the lower interest rates present an opportunity to secure cheaper financing and expand their businesses. Sectors such as startups, technology, and export-driven manufacturing are expected to gain the most from this policy.
With inflation stabilizing around 2% and the economy recovering, the Bank of Canada sees no immediate need for further rate cuts. However, potential economic disruptions from U.S. trade policies could alter this outlook.
Reports suggest that if U.S. President Donald Trump proceeds with a proposed 25% tariff on Canadian imports, the Canadian government plans to implement financial aid measures similar to those used during the COVID-19 pandemic. However, these programs require parliamentary approval, and given that the Liberal government lacks a parliamentary majority, there is no guarantee they will pass.
All opposition parties have expressed their intent to oust the current government, meaning any economic stimulus package would require support from the New Democratic Party (NDP). The NDP has backed the Liberal government over the past three years. The Canadian Parliament is currently adjourned until March 24, allowing the Liberal Party to select a new leader to replace Justin Trudeau, with Mark Carney as a likely successor. However, an early leadership decision may occur before the scheduled date.
Tiff Macklem, Governor of the Bank of Canada, stated that household debt is not a sustainable driver of consumption growth. He expressed greater concern about declining business investment due to tariff threats, arguing that such policies could have a more significant impact on the Canadian dollar than interest rate differentials.
He also reaffirmed that the Bank of Canada believes inflation has been successfully contained. The central bank aims to ensure that any CPI increases resulting from tariffs remain temporary and that the consequences of trade policies are managed to minimize sudden economic disruptions.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.