Loonie resumes gains before BOC decision

Canadian dollar rose in American trade on Wednesday against a basket of major rivals, resuming gains and approaching three-month highs. 

The gains come ahead of Bank of Canada's policy decisions later today, expected to result in no changes in interest rates.

USD/CAD 

USD/CAD fell 0.3% to 1.3552, with a session-high at 1.3595, after closing down 0.4% on Tuesday on profit-taking off three-month highs at 1.3480. 

Canadian Interest Rates

Canada's interest rates have settled at 5%, already the highest since 2001 in order to control record inflation rates. 

Expectations 

We here expect the BOE to confirm the end of the current cycle of policy tightening and might even pave the way for early interest rate cuts in 2024 to prop up the economy.