• USD/CAD declined on Wednesday as Canadian dollar firmed after Bank of Canada cuts rates to counter tariffs.
• The Bank of Canada cut its policy rate by 25 bps to 2.75% on Wednesday, warning of a new crisis as it braces for the impact of Trump’s tariffs on the economy.
•The Bank of Canada warned that a prolonged tariff war could weaken GDP growth and drive up prices, complicating rate decisions.
•The Bank of Canada has now cut rates for the seventh straight time, reducing the key rate by 225 bps in nine months, making it one of the most aggressive central banks globally.
• At GMT 18:52, the pair was down 0.25% at 1.4397.
• Immediate resistance is located at 1.4544 38.2%fib), any close above will push the pair towards 1.4576(Higher BB).
• Support is seen at 1.4375(50%fib) and break below could take the pair towards 1.4284(March 7th low).
Recommendation: Be on sidelines
