FXStreet notes that the Bank of Canada (BoC) cut the overnight rate by 50bps to 0.25% today. The CAD weakened on the news, strategists at TD Securities inform.

“The BoC cut rates by 50bps to 0.25% while unveiling two new programs to support liquidity.”

“We think today's move reinforces that 1.40 in USD/CAD is an effective floor until we see activity pick-up again. We think it is both a heroic and dangerous assumption to assume that CAD's outperfromance earlier this week can continue.”

“We think USD/CAD must trade higher. 1.45 marks a benchmark level for USD/CAD, but we reckon it will trade above this for some time.”