The Monetary Policy Committee at the Bank of Canada decided after the conclusion of its meeting held today, Wednesday, to reduce interest rates by about 25 basis points, marking the third consecutive meeting, as the main interest rate now stands at 4.25%. This decision was in line with broadly held market expectations.

In just a few minutes, investors are awaiting the release of the interest rate statement from the Monetary Policy Committee at the Bank of Canada, which provides a clearer view of the Bank of Canada's decisions and the economic situation within the country, which has a strong impact on the trading of the Canadian dollar against other currencies.

It is worth noting that the Bank of Canada makes its interest rate decision regarding the overnight lending and borrowing rates among major financial institutions within the country. Traders are monitoring changes in interest rates, as short-term interest rates are what measure a currency's value. The higher the interest rates rise above expectations, the more positive it is for the Canadian dollar; however, if they fall more than expected, it negatively impacts the Canadian dollar.