USD/CAD chops sideways in the countdown to the Bank of Canada decision

The BOC decision is at 10 am ET (1400 GMT)

The Bank of Canada is entirely likely to leave rates unchanged at 1.50% when the decision is released at 10 am ET. The market flirted with the idea of a hike but NAFTA troubles and Poloz's Jackson Hole speech indicated to rush to boost rates.

Comments in the statement on business investment will be a key spot to watch. Canadian growth has been solid but investment has been restrained, which raises questions about the longer-term outlook.

The main thing to watch will be hints about an October hike. At the moment, the market is pricing in a 76% chance that Poloz raises rates next month, but policymakers don't like to give clear hints and forward guidance so there's a chance the market sees that as uncertainty and sells the loonie.

At the moment, USD/CAD is at 1.3183 from a high of 1.3206 and a low of 1.3164.

NAFTA negotiations also resume today.

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