Keep an eye on the Canadian dollar’s movements to see if the policy rate will be cut by 0.25%

Keep an eye on the Canadian dollar’s movements to see if the policy rate will be cut by 0.25%

29.01.2025

In yesterday’s U.S. currency markets, the Canadian dollar rose against the yen ahead of today’s BOC policy rate announcement.The CAD/JPY pair traded between 107.396 and 108.269. On the hourly chart, it has retreated from the -3σ Bollinger Band back to the centerline. Meanwhile, on the 4-hour chart, the 20-period moving average is capping the upside, and on the daily chart, the RSI is trending downward from around the 60 level. We will need to monitor price action during U.S. trading hours to see if the Canadian dollar continues to weaken.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.2495 to 1.2415. 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 price is currently retesting the resistance zone of the 200-period simple moving average (SMA), which it had briefly broken above. During today’s Asian trading session, the pound has turned higher again. We will monitor the situation to determine whether the pound can maintain this upward momentum.

Today’s economic indicators include the Australian Consumer Price Index at 9:30, the Japanese Consumer Sentiment Index at 14:00, the Swedish central bank’s policy rate and statement at 16:00, the Eurozone Money Supply at 18:00, the U.S. MBA Mortgage Applications Index and Mexican Employment Statistics at 21:00, U.S. Wholesale Inventories at 22:30,23:15 UK: Remarks by BOE Governor Bailey; 23:45 Canada: BOC Policy Rate and Statement; 24:30 Canada: BOC Governor Macklem Press Conference; US: Weekly Crude Oil Inventories; 28:00 US: FOMC Policy Rate and Statement; 28:30 US: Remarks by Fed Chair Powell.We should watch for movements in the Canadian dollar following the release of these indicators to see if the policy rate is cut by 0.25% as expected by the market.

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