USD/CAD: Rangebound trade persists with BoC on hold – Danske Bank

Danske Research Team highlights that USD/CAD remains confined between 1.36 and 1.37 as risk-off sentiment offsets support from Canada’s net energy exporter status. The bank expects the Bank of Canada to keep its policy rate unchanged at 2.25% at an interim meeting without new projections, with attention on forward guidance tone rather than policy changes.

Energy support offsets risk-off Dollar bid

"In the afternoon, focus turns to the Bank of Canada meeting at 14:45 CET - where we, in line with consensus, expect the policy rate to remain on hold at 2.25%."

"Note that this is an interim meeting without a new Monetary Policy Report, so focus will be on the tone of forward guidance."

"The CAD remains resilient among G10 currencies against the USD, supported by Canada's net-energy exporter status."

"However, risk-off sentiment and broader USD strength have kept USD/CAD rangebound between 1.36-1.37."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)