• USD/CAD trades in positive territory for the sixth consecutive day near 1.3785 in Wednesday’s early Asian session. 
• BoC is widely anticipated to cut its benchmark interest rate by 25 bps to 4.50% at its July meeting on Wednesday. 
• Economists expect the Fed will cut interest rates twice this year amid the cooler inflation over the past few months. 

The USD/CAD pair extends a rally around 1.3785 during the early Asian session on Wednesday. The pair edges higher amid the risk-off mood, which boosts the Greenback broadly. Investors will closely monitor the Bank of Canada (BoC) interest rate decision later in the day, which is expected to cut rates again by 25 basis points (bps) to 4.5%.

After the signs of easing price pressures in June, the financial markets have almost fully priced in a 25 bps rate cut by the BoC that would bring the benchmark rate down to 4.5%. Taylor Schleich, rates strategist at the National Bank of Canada, said, “A rate cut is likely to be delivered,” and the Canadian central bank might reiterate its message that future cuts will be based on incoming data.