- The USD/CAD is maintained plane around 1,3955 in the early Asian session on Wednesday.
- The BOC is expected to maintain stable interest rates on Wednesday.
- Trump said the automotive industry could obtain tariff exemptions.
The USD/CAD pair remains stable about 1,3955 during the early Asian session on Wednesday. The bullish potential for the Canadian dollar (CAD) could be limited amid the moderate expectations of the Canada Bank (BOC). The decision on the BOC interest rate will be the center of attention later on Wednesday, without changes in the expected rates.
The coldest Canadian inflation data than expected supported the bets for additional cuts of interest rates on the part of the Boc this year, which could drag the CAD downwards against the dollar. The data published by Canada statistics on Tuesday showed that the inflation of the consumer price index (CPI) of the country was softened to 2.3% in March from 2.6% in February. This figure was lower than the 2.6%estimate. In monthly terms, the CPI rose 0.3% in March, compared to the previous 1.1% and 0.7% expected.
Investors saw a 57% probability that Boc pausara their cycle of interest rate cuts at their April meeting on Wednesday, but they expected the Boc to resume the loosening in June and were valuing two additional reductions in total by the end of 2025, according to a reuters survey. The BOC reference interest rate is currently at 2.75%.
The president of the USA, Donald Trump, said Monday that he was considering a modification to 25% tariffs on imports of cars and pieces of foreign cars from Mexico, Canada and other nations. The Trump movement to exempt crucial technological products from reciprocal tariffs and the reports of a possible pause in its levies to car imports relieved concerns about the imminent recession risks in the US in the US, in turn, it could provide some support to the US dollar (USD) in the short term.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.