Canadian stocks edged higher on Wednesday

Index Update:  After opening above yesterday's close, today the benchmark S&P/TSX Composite Index remained volatile throughout the session before settling at 33,176.07, up by 79.67 points (or 0.24%).

Macro Update:  Stating that the Governing Council has concluded that the current policy rate remains appropriate, today the Bank of Canada decided to leave interest rates untouched for the second straight meeting. With today's decision, which was widely anticipated, the central bank maintained its target for the overnight rate at 2.25%, with the Bank Rate at 2.50% and the deposit rate at 2.20%. With regard to its economic outlook, the BoC stated that growth is projected to be modest in the near-term with a slowdown in population growth while Canada adjusts to U.S. protectionism. Inflation is projected to remain near the 2% target. Though the central bank stressed that uncertainty has heightened, it also added that the bank is prepared to respond if the outlook changes.

Top Movers:  Among the individual stocks, Aya Gold and Silver Inc (6.63%), Oceanagold Corp (4.30%), Skeena Resources Ltd (4.30%), Parex Resources Inc (2.17%), and Firan Technology Group Corp (5.27%) were the prominent gainers.

Our Stance: Price action is currently consolidating near the key 33,100 support zone; holding above this level is essential to maintain the broader bullish bias, while a decisive breakdown could trigger a corrective move toward the 32,900–32,700 region.

Commodity Update:  The U.S. dollar stayed weak on Thursday as uncertainty over U.S. economic policy and geopolitical developments continued to weigh on sentiment, despite supportive comments from the White House and European officials. The Federal Reserve’s calmer view on labour market and inflation risks strengthened expectations of interest rates remaining on hold for longer. Gold jumped 3.98% to USD 5,552.36, silver rose 3.56% to USD 117.57, and copper climbed 4.29% to USD 13,688.00, while Brent crude advanced 0.73% to USD 68.90 on Middle East supply concerns.

Technical Update:

The S&P/TSX Composite Index posted modest gains on Wednesday, advancing 79.67 points (+0.24%) to close at 33,176.07, supported by healthy trading volumes that underscore solid investor participation and reinforce the prevailing bullish momentum. Technically, the index continues to trade comfortably above its 50-period Simple Moving Average (SMA), which remains an important dynamic support for the ongoing uptrend. Momentum indicators stay constructive, with the 14-period RSI at 68.97, reflecting sustained buying interest while remaining below overbought territory. Price action is currently consolidating near the key 33,100 support zone; holding above this level is essential to maintain the broader bullish bias, while a decisive breakdown could trigger a corrective move toward the 32,900–32,700 region.