USD/CAD edges lower ahead of BOC rate decision later today

Yesterday the USD/CAD was on the rebound when the latest manufacturing PMI data seemed to halt that move, from earlier lows underneath 1.35 to just above 1.3550. However, in the event it did not really have a lasting impact and the USD/CAD later closed in the US at 1.3551. The high seen prior to that close was set at 1.3563. Today the US dollar has edged backwards from an earlier session high at 1.3557, towards 1.3530. At 1.45pm GMT the Bank of Canada (BOC) is set to deliver its latest policy decision and the consensus around the markets is for another 0.25% reduction in the OCR (official cash rate), from 4.5% to 4.25%. Perhaps such an outcome is already priced in at the current levels, given the recent rebound from a low at 1.3440 seen last week? That said, even if the USD/CAD does lift on the expected outcome, resistance from the 200 day moving average (in place today at 1.3587) still lies in wait higher up. What is not priced, is a bigger reduction, or perhaps no reduction at all. The low seen so far today has been set at 1.3533. The USD/CAD is currently trading at 1.3537