BoC Signals Two-Way Trading in USDCAD

Bank of Canada Governor Tiff Macklem praised Federal Reserve Chair Jerome Powell for navigating a difficult environment but also expressed concern over political pressure on the Fed from President Trump. Macklem’s comments suggest the BoC could pursue a more independent stance, instead of closely shadowing U.S. policy.

Implications for USDCAD

This independence could open the door to more two-way opportunities in the pair, with traders weighing Canadian-specific drivers more heavily rather than assuming BoC policy will follow the Fed.

Technical Picture

On the 4-hour chart, USD/CAD continues to trade within a well-defined range:

• Resistance: 1.3845–1.3880, repeatedly capping upside in September.

• Support: 1.3720, a strong demand zone.

• Trend: Higher lows since mid-September suggest that buyers may be gradually building strength.

A decisive break on either side of this range could set the next directional move, making this week pivotal for the pair’s outlook.