# Canadian dollar falls after the Bank of Canada signals a move to the sidelines

> The Canadian dollar fell after the Bank of Canada raised rates by 25 basis points and signaled it would hold rates steady. The statement said the bank expects to hold the policy rate while it assesses the cumulative effect of past increases. USD/CAD rose to 1.3407 from 1.3350 before the decision.

- Date: 2023-01-25 · published 2023-01-25T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/38038-canadian-dollar-falls-after-the-bank-of-canada-signals-a-move-to-the-sidelines
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

The signal of a policy pause reduces expectations of further Canadian rate increases, which weakens the currency. A pause elsewhere could also support global growth and commodity demand in 2024.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- investinglive.com: https://investinglive.com/news/canadian-dollar-falls-after-the-bank-of-canada-signals-a-move-to-the-sidelines-20230125/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.