Skip to content USDCAD Slides to Year-High Amid Oil and Rate Cuts
The Canadian dollar fell to 1.39 per USD in October, marking its lowest point since October 2022. This decline was driven by decreasing oil prices and the Bank of Canada’s cautious policies.
The possibility of reduced tensions between Israel and Iran decreased the risk premiums on oil futures, which impacted projections for Canadian foreign exchange earnings and weakened the Canadian dollar. The USD/CAD 4-hour price chart below demonstrates the price, support, and resistance levels.
Domestically, the Bank of Canada reduced its principal interest rate by 50 basis points during its recent session and suggested that additional rate cuts might be forthcoming. This contrasts with the more stable outlook from the U.S. Federal Reserve.
The decision came in response to a cooling inflation rate, which dropped to 1.6% in September—the first dip below the Bank’s 2% goal in three years—and a rise in unemployment to a two-year peak of 6.6%, although it later improved slightly to 6.5%.
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