Daily Commentary & Market Insights, Mar.4, 2020

Good morning,

After yesterday’s surprise FED rate cut of 50 bps, marking the first emergency rate cut since 2008 by the FED the BoC has followed suite with there own stimulus measure. The Bank of Canada has also cut its benchmark rate by 50 bps, citing that the BoC is “ready to adjust monetary policy further if required”. The cut is largely attributed to concerns over the economic impacts that the coronavirus has on dampening global growth as well as domestic interruptions to the supply chain due to the CN blockades. The market is reacting to the news with a pop to the upside on the USDCAD pair, although no major resistance levels have been broken been thus far. Levels remain at 1.3310 support along with one year resistance of 1.3472.