When is the BoC interest rate decision? How could it affect USD/CAD?

The Bank of Canada will hold its monetary policy meeting today at 1500h GMT. Market consensus expects the central bank to leave the key rate unchanged at 0.50% while the statement should keep the cautious tone and the broad ‘wait-and-see’ mode seen in recent months.

In the same line, the BoC is likely to emphasize the ongoing slack in the labour market, while excess capacity keeps dwindling. In addition, the statement should reiterate the persistent uncertainty over the US economy under the new administration

What can we expect of USD/CAD?

Spot is trading on quite a firm note as of late, returning to 6-week tops beyond 1.3300 the figure backed by the sharp upside in the greenback in response to increasing bets on a potential Fed move at the meeting on March 15. The next interim target appears near 1.3390 (high January 20). If cleared, there is not much in terms of resistance until the Fibo retracement of the 2016 drop at 1.3575 and December tops just above 1.3600 the figure. On the downside, today’s lows around 1.3280 is reinforced by the 100-day sma at same levels ahead of the 55-day sma currently at 1.3228.