Daily Foreign Exchange Update

September 17, 2025

Spot Rates

• USDCAD spot rate: 1.3758 - 1.3763 (as at 7:50am PST)
• Asia: 1.3737 to 1.3762
• Europe: 1.3748 To 1.3769
• North America: 1.3755 to 1.3769

Technical Support / Resistance:

• S2 1.3650
• S1 1.3700
• R1 1.3800
• R2 1.3850

Key Economic Data Releases:

• Bank of Canada interest rate: 2.5% exp 2.5% prev 2.75%
• Fed interest rate decision & economic projections: 11am

Important Events We're Watching This Week

• Sep 18, USA, Jobless claims, Philadelphia Fed mfg survey
• Sep 19, Canada, Retail sales (July)

Market Spotlight The CAD trades on the back foot against the USD on Wednesday after the Bank of Canada cut its benchmark rate by 25-basis-points to 2.50%, as expected. At the time of writing, USD/CAD is trading around 1.3760 during the American session, snapping a two-day losing streak. In its Monetary Policy Statement, the BoC said that three key developments had shifted the balance of risks since July. The labour market has softened further, underlying inflation pressures have diminished, and Canada’s removal of most retaliatory tariffs has reduced upside inflation risks. Policymakers noted that GDP declined by 1.6% in the second quarter, exports to the U.S. fell sharply, and uncertainty surrounding US trade policy has weighed heavily on business investment. BoC Governor Tiff Macklem underlined the reasoning behind the move, saying there was a clear consensus on the Governing Council to cut rates and that the reduction was appropriate given a weaker economy and reduced inflation risks. He added that the Bank would remain data-dependent and closely monitor how trade disruptions, labour market slack, and inflation expectations evolve. A notable change in today’s statement was the removal of explicit forward guidance on further rate cuts. While the Governing Council left the door open to additional easing if conditions deteriorate, the shift underscores a more data-dependent stance rather than a preset path of cuts. Meanwhile, a steady USD is adding some pressure on the Loonie as traders await the Fed’s monetary policy decision later on today at 11am. Markets are fully pricing in a 25 bps cut, but the focus will be on Chair Jerome Powell’s forward guidance and the updated dot plot to gauge the pace of the easing cycle.

• Currently, the TSX is up 0.21% while the DJIA is up 0.50%.
• EURCAD is down 0.02% trading between 1.6270 and 1.6316.
• GBPCAD is up 0.25% trading between 1.8743 and 1.8811.
• JPYCAD is up 0.27% trading between 0.00937 and 0.00940.
• Gold is down 0.23% trading between $3,660 - $3,695USD/oz.
• Silver is down 1.42% trading between $41.12 - $42.62USD/oz.
• Oil (WTI crude) is down 0.54% trading between $63.84 and $64.64