USD/CAD finds support at 1.3580 after BoC delivers first cut

USD/CAD has stabilized at 1.3585 (+0.1%) after the Bank of Canada delivered its first rate cut in six months, reducing the overnight rate by 25 basis points to 4.50%. The Canadian dollar showed resilience despite the dovish move, with strong support emerging at 1.3560. The BoC cited easing inflation pressures and slowing economic growth as justification for the cut, with Canadian CPI now at 2.7%. Oil prices have provided additional CAD support, with WTI crude rising 1.2% to $71.50/barrel. Technical indicators show immediate resistance at 1.3620, while the 200-day moving average at 1.3550 offers strong support. The divergence between Fed and BoC policy paths suggests potential range-bound trading near-term. Traders are monitoring upcoming Canadian employment data for further directional cues, with a break below 1.3560 potentially targeting 1.3500.