The USD/CAD currency pair was hovering above a 1-month low of 1.3924 on Wednesday ahead of the outcome of the Federal Reserve’s and the Bank of Canada’s policy meetings.
The Fed is widely expected to lower its federal funds rate target range by 25 basis points to 3.75%-4.00% at its October meeting.
In September, the Fed cut borrowing costs by 25 basis points and indicated another 50 basis points of rate cuts by the end of the year.
Investors will also be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of future interest rate cuts.
The Fed chief had described the September policy action as a risk-management cut addressing the weakening labor market. Powell had also said the central bank was in a “meeting-by-meeting situation” in regard to the rate outlook.
Meanwhile, the Bank of Canada is expected to lower its benchmark interest rate by 25 basis points to 2.25% at its October 29th policy meeting.
In September, BoC policy makers highlighted the Canadian economy showed signs of fragility to US tariffs after an initial period of resilience. This was evidenced by a 1.6% GDP contraction in the second quarter amid a 27% drop in exports.
At the same time, CPI inflation was below the 2% target in August, creating room for easier policy to address growth concerns.
The USD/CAD currency pair was last down 0.13% on the day to trade at 1.3926.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
