The Canadian dollar surrendered part of a seven-session advance Monday, with USD/CAD trading around 1.4023 as markets looked ahead to Wednesday’s policy decisions in Ottawa and Washington.
FXStreet placed the pair near 1.4023 at 12:14 p.m. ET Monday, after it touched 1.3969 Friday. Investing.com’s daily history also lists 1.4023 for Monday, but records Friday’s low at 1.3968. FXStreet described Friday’s level as a six-week low and said Monday’s rebound ended seven consecutive declines in the pair.
The retreat returned USD/CAD above C$1.40, a threshold covered in an earlier EconoTimes report. FXStreet reported that traders expected the Bank of Canada to raise its overnight rate by 25 basis points on Wednesday, while the Federal Reserve was expected to keep its target range unchanged. The outlet said an increase would be the Bank of Canada’s first since July 2023. Neither decision had been announced.
The Bank of Canada last held its overnight rate at 2.25% on Sept. 2; its rate history shows that level in place since Oct. 29, 2025. The Fed raised its target range by 25 basis points to 3.75%–4.00% on Sept. 16.
In September, the Bank of Canada attributed inflation near 3% in recent months largely to gasoline. It also warned that sustained oil costs and refinery margins could push up prices elsewhere in the economy. The Fed described economic growth as solid and said inflation continued to run high.
The Bank of Canada is scheduled to announce its decision and release its quarterly Monetary Policy Report at 9:45 a.m. ET Wednesday, followed by a press conference at 10:30 a.m. The Fed’s announcement is scheduled for 2 p.m. ET, with a news conference at 2:30 p.m. Statistics Canada is due to publish August GDP-by-industry data Friday, Oct. 30.
