Fed Cuts, BoC Pauses — What’s Next for Rates?

Author

FX Rocket Profits
October 31, 2025

In partnership with

FOMC Cuts, BoC Signals Pause & Markets Recalibrate

Central banks took center stage this week as the Fed and Bank of Canada both trimmed rates — but with very different tones.

The FOMC delivered a widely expected 25bp cut, bringing the Fed Funds rate to 4.75%. But the real story was the uncertainty around December: Powell emphasized data dependency, leaving traders guessing whether this was the last cut of the year.

Meanwhile, the Bank of Canada also lowered rates to 2.25%, but signaled that its easing cycle may be over. With inflation still sticky and growth stabilizing, the BoC hinted at a pause — sending CAD higher and bond yields up.

Markets responded with cautious optimism. Equities edged higher, gold held steady, and FX traders recalibrated rate expectations across the board.

The theme? When central banks diverge, clarity becomes the new currency.

⚡Daily Broad Market Recap – October 29, 2025

  • S&P 500 rose 0.4%; Nasdaq gained 0.6% on tech strength.

  • Gold held near $4,012; oil dipped to $60.20.

  • USD traded mixed; Bitcoin climbed to $115,200.

🔥FOMC Cuts Rate, December Still Uncertain

  • Fed lowered rates to 4.75%, citing softening inflation.

  • Powell emphasized data dependency for future moves.

  • Traders now split on odds of a December cut.

📊BoC Trims Rate to 2.25%, Signals Pause

  • Canada’s central bank cut rates but hinted the easing cycle may be done.

  • Inflation remains elevated; growth is stabilizing.

  • CAD strengthened as traders priced in a longer hold.

This issue blends policy pivots with market recalibration. As the Fed and BoC chart different paths, traders are reminded that when guidance fades, positioning becomes the playbook.

Happy Trading!

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