The Bank of Canada is expected to lower its policy rate by 50 bps, despite a slight increase in Canada's core inflation in October.

Canada's economic growth remains a concern, with domestic GDP expanding by only 0.3% in Q3, falling short of the 0.5% growth seen in Q2 and Q1. The Bank reassures that the interest rate adjustment is unlikely to have a significant impact on Q4 growth.

The announcement of higher-than-expected U.S. inflation may continue to exert pressure on the Canadian dollar.

Source: Fxstreet