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USD/CAD remains heavy near 1.3765 – BBH

USD/CAD is trading near recent lows around 1.3765 following the Bank of Canada’s (BOC) decision to hold its policy rate at 2.25%. With the BOC emphasizing a cautious outlook and market expectations pricing a modest 25bps hike over the next year, the pair is expected to gradually edge lower toward 1.3500–1.3600, BBH FX analysts report.

BOC holds policy rate at 2.25%, signals caution

"USD/CAD is heavy near recent lows around 1.3765. At last week’s meeting, the BOC kept the policy rate unchanged at 2.25% as expected."

"The BOC emphasized again that it 'sees the current policy rate at about the right level to keep inflation close to 2%'. The BOC leaned slightly against market expectations for rate hikes cautioning that 'uncertainty remains elevated'. Still, the swaps curve implies a 25bps rate increase to 2.50% over the next twelve months."

"We expect USD/CAD to edge lower and stabilize between 1.3500-1.3600."

CAD holds steady near Friday’s close against USD – Scotiabank

The Canadian Dollar (CAD) remains near Friday’s closing level versus the US Dollar (USD), trading just below its estimated fair value of 1.3798.
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EUR steady in mid-1.17s ahead of ECB Thursday – Scotiabank

The Euro (EUR) is steady, trading in a tight range in the mid 1.17s and entering Monday’s NA session with a fractional gain vs. the US Dollar (USD).
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