USD/CAD up from two-week low, US Fed and Bank of Canada cut rates by 25 basis points

USD/CAD pair edged up from a two-week low as central banking action stayed in focus yesterday. US dollar index rose from a seven-month low after the US Federal Reserve cut its benchmark interest rates by 25 basis points to 4.25% and marking its first rate cut this year. However, the Fed is in a "meeting-by-meeting situation" regarding the outlook for interest rates, Powell said following the decision. Meanwhile, Bank of Canada also cut interest rates by 25 basis points to 2.50% after leaving interest rates unchanged for three straight meetings. The Canadian central bank's Governing Council said that it determined a rate cut was appropriate to better balance the risks amid signs of weakness in the economy and less upside risk to inflation. USD/CAD is currently quoting at 1.3787, up 0.10% on the day.

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