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USD/CAD braced for a BOC rate cut today- is that priced in already?

The Bank of Canada is widely expected to lower its OCR (Official Cash Rate) today, from 5% to 4.75%. That decision is due at 1.45pm GMT and comes just ahead of the 2pm GMT US non-manufacturing ISM report. Perhaps the biggest surprise will be if the BOC does not lower its benchmark rate today. Beyond that, the real question right now, is how much is this BOC outcome now priced into the markets? It is arguable; that there is scope right now for a BUY the rumour, SELL the fact kind of move in the USD/CAD right now, which could suggest the US dollar might fall back, when the BOC makes its move. However, that is not necessarily a view that is shared here. We should also not forget the impact of that ISM data some 15 minutes after the BOC decision, because that might reverse any immediate reaction on the USD/CAD. The pair closed in the US last night at 1.3676 and it is not far removed from that closing level right now this morning. There will be more to add on this later today, ahead of the BOC decision
 

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