The USD/CAD has extended the earlier gains of the day following the decision of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve to raise interest rates by 75 basis points, thus meeting market expectations. This move ended days of speculation as to whether the Fed could go further by 100 basis points. The USD/CAD is trading at 0.21% after the announcement.
The USD/CAD had ended the 21 September trading day by 98 pips to the green after the Loonie was hit by massive risk-off sentiment following the announcement of the active deployment of 300,000 reservists in Russia to join the combat zone in Ukraine. The escalation promoted a rush into the safe-haven greenback, sending the USD/CAD to its highest levels in two years. As a consequence, bond yields in Canada eased across the curve.
With the increase in interest rates, the USD/CAD is expected to extend its gains into the weekend.
USD/CAD Long (Buy)
Enter at: 1.34762