The Canadian Dollar takes its bid from Washington, as usual USD/CAD slides to a session low just above 1.4050 on the Federal Reserve hold, unwinding a grind that had the rate at the 1.4100 handle earlier in the session.
The Chair’s press conference at 18:30 GMT is the last forward-looking item on the day, with no projections attached to this meeting
The hold arrived at 18:00 GMT on a 9-3 vote, the target range unchanged at 3.50% to 3.75% with three voting members preferring an immediate quarter-point increase. The Loonie took roughly 30 pips out of the rate on the headline, dragging it to a session low just above 1.4050 from a high at the 1.4100 handle. Nothing Canadian was involved in any of it, which is the pattern rather than the exception.
What moved is the expected gap rather than the posted one: a December Bank of Canada hike has been fully priced since the mid-July captures, and the Federal Reserve just refunded better than a third of a hike from this meeting. The briefing at 18:30 GMT can hand that back, since three dissents give the Chair a mandate to point at September, where pricing already carries roughly three-quarters odds of at least one increase. USD/CAD 5-minute chart Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed).