USD/CAD is trading at the lower end of its year-to-date 1.4260-1.4800 range, BBH FX analysts report.  

Markets expect the BOC to deliver more rate cuts

"The Bank of Canada (BOC) releases the Summary of Deliberation from its January meeting. At that meeting, the BOC delivered on expectations and slashed the policy rate 25bps to 3.00%. The BOC also announced technical changes to its monetary policy implementation framework and signaled that the bar for additional easing is high."

"The BOC reiterated that the cumulative reduction in the policy rate since last June is substantial and lifted inflation projections for 2025 and 2026. Nonetheless, markets expect the BOC to deliver more rate cuts, which is an ongoing drag for CAD. We agree." 

"The swaps market is pricing in 50bps of easing over the next 12 months that would see the policy rate bottom at 2.50%."