Will the Bank of Canada cut its policy rate by 0.5%? Market participants are keeping a close eye on the Canadian dollar’s movements.

Will the Bank of Canada cut its policy rate by 0.5%? Market participants are keeping a close eye on the Canadian dollar’s movements.

23.10.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen ahead of today’s Bank of Canada (BOC) policy rate announcement. The CAD/JPY pair rose from 108.781 to 109.385. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 10-period MA is acting as support, while on the daily chart, the pair is in the process of breaking above the 200-period exponential moving average (EMA) resistance line.Since a 0.5% rate cut is expected from the BOC today, traders should be cautious of price movements immediately following the announcement.

Among European currencies, the euro weakened, following the Japanese yen. The euro fell against the U.S. dollar from 1.0838 to 1.0792. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 20-period MA is acting as resistance, causing the price to pull back, and on the daily chart, the price has already broken below the 200-period simple moving average (SMA) support line with a real body candle.On the weekly chart, prices have fallen to levels not seen since late July of this year, so we will be watching to see if a rebound occurs during European trading hours.

Today’s schedule includes the Singapore Consumer Price Index at 2:00 PM, the Turkey Consumer Confidence Index at 4:00 PM, the South Africa Consumer Price Index and Taiwan Industrial Production at 5:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the Bank of Canada (BOC) policy rate decision and statement at 10:45 PM, and at 11:00 PM, the ECB President Lagarde’s remarks, U.S. existing home sales, the Bank of Canada (BOC) Governor Macklem’s press conference at 11:30 PM, U.S. weekly crude oil inventories, and the Bank of Canada (BOC) policy rate decision and statement at 1:00 AM.remarks by ECB President Lagarde and U.S. Existing Home Sales, at 11:30 PM the Canadian BOC Governor Macklem press conference and U.S. Weekly Crude Oil Inventories, at 2:00 AM the U.S. 20-Year Treasury Auction, and at 3:00 AM the U.S. Beige Book. We should watch closely for movements in the Canadian dollar immediately following the announcement to see if the BOC cuts its policy rate by 0.5%.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed