USD/CAD is down on broad USD weakness – BBH

Bank of Canada faces weak business outlook, BBH FX analysts report.

Markets price in rate cuts as BOC faces economic slowdown

"The Bank of Canada’s (BOC) business outlook survey deteriorated in Q1. The Business Outlook Survey (BOS) indicator reversed its upward trend and remains below average. The decline reflects lower balances of opinion on employment, investment, and measures of future sales."

"Meanwhile, one year inflation expectations increased for a second consecutive quarter to 3.61% in March, the highest since October 2023. Still, longer-term inflation expectations remain well anchored around 2% and leaves room for the BOC to ease again next week."

"Markets price-in 70% odds of a follow-up 25bps BOC policy rate cut to 2.50% at the April 16 meeting and a total of almost 75bps of easing over the next 12 months."