A dovish Bank of Canada could spark a true breakout in USD/CAD

The Bank of Canada interest rate decision is coming up at 9:45 am ET and there could be fireworks.

The market is pricing in an 18% chance of a rate cut, down from 24% yesterday but still very-much in play. Beyond that, the Bank of Canada could tee up at cut at the June meeting. Right now that meeting is priced at 69%.

USD/CAD jumped earlier on a broadly strong US dollar due to a hot CPI reading.

A dovish Bank of Canada could put this pair in the fast lane on the way to 1.38.

This article was written by Adam Button at www.forexlive.com.