Bank of Canada lowers interest rates as expected- USD/CAD lifts slightly

The Bank of Canada have just decided to lower their key official cash rate (OCR) to 4.5%, from 4.75%. This was very much the expected outcome by the markets. Ahead of this the USD/CAD had been in something of a holding pattern trading above 1.3775, having earlier touched the 1.38 mark briefly, as noted here earlier today. A previous high seen on the USD/CAD was at 1.3804 and it was reached on April 19. The reaction to this decision today has seen the US dollar lift slightly on the news. However, not remains to be seen just now much of this decision was already priced into the market, but the BOC has tweaked their language in the accompany statement, removing their concerns about upside risks to inflation. The USD/CAD is currently trading at 1.3790