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SocGen Says Bias for USD/CAD Is Skewed to Downside Ahead of Bank of Canada Rate Decision

BY MT Newswires | ECONOMIC | 01/28/26 08:37 AM EST

08:37 AM EST, 01/28/2026 (MT Newswires) -- The Bank of Canada is forecast to leave rates unchanged at 2.25% on Wednesday, said Societe Generale.

The BoC, in its first monetary policy report since the Canadian government budget in November 2025, will provide additional information on the economic outlook with its Monetary Policy Report, though uncertainty remains about the USMCA trade deal review, noted the bank.

At 2.25%, the key rate is at the lower end of the neutral range, pointed out SocGen. Minutes from the BoC December policy meeting indicated officials were wary of data signaling an improvement in economic activity.

The bias for USD/CAD is skewed to the downside after the slide below 1.3600, according to the bank. Next support rests at 1.3535, added SocGen.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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