Analyst: The Canadian interest rate decision may have a moderate impact on the exchange rate.

Analysts at Monex Europe indicated in a report that the Bank of Canada is likely to maintain interest rates on Wednesday and hint at the possibility of future rate hikes, but this will only provide moderate support for the Canadian dollar. They stated that the direction of the exchange rate is more likely to be driven by the US inflation data released at 12:30 Greenwich Mean Time, as well as geopolitical factors following the US strike on Iran on Tuesday. The Bank of Canada's decision will be announced at 13:45 Greenwich Mean Time. Data from the London Stock Exchange Group shows that the market expects interest rates to remain at 2.25%, but there is already strong anticipation of a 25 basis point hike in December. The US dollar fell by 0.1% to 1.3932 Canadian dollars.