USD/CAD trades above 1.4000 ahead of a pivotal Bank of Canada meeting, with traders pricing in an 80% chance of a 25 basis point rate increase to 2.50%.
The USD/CAD pair is currently trading above the 1.4000 psychological level as market participants await the Bank of Canada's upcoming interest rate decision. With an 80% market probability priced in for a 25 basis point hike to 2.50%, the potential for a new tightening cycle is providing support to the Canadian Dollar, which exerts downward pressure on the USD/CAD exchange rate.
There is an 80% probability priced in for a 25 basis point hike, which would bring the rate to 2.50%.
The pair is currently holding above the 1.4000 level ahead of the central bank announcement.
The USD/CAD pair maintains support above the 1.4000 level as investors prepare for the upcoming Bank of Canada policy decision. Markets currently price an 80% probability of a 25 basis point rate hike, which would lift the benchmark rate to 2.50% and signal a new monetary tightening cycle.
Markets are pricing in an 80% probability of a 25 basis point rate hike, which would bring the benchmark interest rate to 2.50%.