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2025-10-29 23:25:43
[Bank of Canada's Rate Cut and Tightening Stance Provide Some Support for the Canadian Dollar] TD Securities strategists stated that the Bank of Canada's latest rate cut was in line with market expectations, but the central bank's guidance leaned more towards tightening, indicating that a new shock is needed before further easing. They believe that 2.25% will be the end of this rate-cutting cycle. This guidance is somewhat positive for the Canadian dollar, and TD Securities predicts that the Canadian dollar will move towards US$1.38 as the outlook stabilizes and federal fiscal stimulus measures are implemented. However, these strategists stated that for the Canadian dollar to see a meaningful rebound and fall below US$1.36, a large-scale fiscal package or resolution of some trade uncertainties surrounding the USMCA (United States-Mexico-Canada Agreement) would be necessary.
