- USD/CAD trades flat about 1.3955 in Wednesday’s early Asian session.
- It is expected that BOC will keep interest rates on Wednesday.
- Trump said that the automotive industry can get tariff exemptions.
The USD/CAD pair stays near 1.3955 during the early Asian session on Wednesday. The advantage of the Canadian dollar (CAD) may be constrained among the pigeon expectations Bank of Canada (BOC). BOC interest rates will pass on Wednesday on Wednesday, without expected rate changes.
Colder than expected Canadian inflationary data has supported the plants for additional interest rates by BOC this year, which can drag the CAD lower in relation to Greenback. Data published on Tuesday by Statistics Canada showed that consumer prices (CPI) in March softened 2.3% from 2.6% in February. This number was softer than a 2.6%estimate. Every month, CPI increased in March by 0.3%, compared to 1.1%earlier and expected 0.7%.
Investors noticed a 57% chance that BOC would stop their cycle of lowering interest rates at the April meeting on Wednesday, but they expected Boc resumed in June and valued in two additional reductions until the end of 2025, according to Reuters. BOC Benchmark interest rate is currently 2.75%.
US President Donald Trump said on Monday that he was considering modifying 25% of tariffs imposed on the import of foreign car parts and cars from Mexico, Canada and other nations. Moving Trump to release key technological products from mutual tariffs and reports on a potential break in its charges related to car imports softened concerns about the direct risk of recession in the USA. This, in turn, can provide some American dollar support (USD) in the near future.
