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CAD edges higher ahead of BoC decision

Tuesday 25 January, 2022

Daily Currency Update

Demand for the Canadian dollar edged marginally higher against the US dollar on Tuesday as investors waited for details from the Bank of Canada's policy meeting. As of Tuesday morning, Bloomberg data showed investors see a 75% probability that the central bank will raise its key interest rate by a quarter point on Wednesday to 0.5 per cent. USDCAD was down 0.10% trading at around 1.26219 at the time of writing.  

Key Movers

The pound moved down to a three-week low against the US dollar on Tuesday while the euro struggled to move away from multi-week lows against USD. GBPUSD was sitting at 1.3493 and EURUSD was at 1.12857 at the time of writing. The US dollar ticked up again against a basket of currencies on Tuesday as investors waited for details from the US Federal Reserve’s policy meeting. The currency also benefitted from its safe haven status as the world watches if tensions between Russia and Ukraine will continue to intensify. The US Dollar Index was up 0.19%, trading at around 96.10 at the time of writing. Investors remained cautious as Russia said it was watching with great concern after the United States put 8,500 troops on alert to deploy to Europe in the event of an escalation in the Ukraine crisis.

Expected Ranges

  • EUR/CAD: 1.4229 - 1.4368 ▼
  • GBP/CAD: 1.6998 - 1.7063 ▼
  • AUD/CAD: 0.901 - 0.905 ▼
  • USD/CAD: 1.2623 - 1.2691 ▼