Created
: 2025.06.05
2025.06.05 19:58
USD/CAD is breaking lower. The downward shift in US rate expectations outweighed the Bank of Canada (BOC) slightly dovish hold, BBH FX analysts report.
"As was largely expected, the BOC left the policy rate at 2.75% for a second consecutive time. The BOC pointed out 'there was a clear consensus to hold policy unchanged' while adding that 'the Canadian economy is softer but not sharply weaker' and 'underlying inflation could be firmer than we thought'."
"However, the BOC left the door open for more easing noting: 'On balance, members thought there could be a need for a reduction in the policy rate if the economy weakens in the face of continued US tariffs and uncertainty, and cost pressures on inflation are contained'."
"The next BOC meeting is July 30, alongside the release of its quarterly Monetary Policy Report. There was minimal reaction in the swaps curve after yesterday's BOC policy decision. The swaps market continues to price in roughly 40% probability of a 25bps cut in July and a total of almost 50bps of easing over the next 12 months. If so, the policy rate would bottom at the lower end of the BOC's neutral range estimate of between 2.25% to 3.25%."
Created
: 2025.06.05
Last updated
: 2025.06.05
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy