CAD Edges Higher on Rate Cut Expectations Ahead of Fed Decision

The Canadian dollar edged higher against its US counterpart on Tuesday as markets remained in a holding pattern ahead of the Federal Reserve's highly anticipated interest rate decision.

This move, while limited in scope, reflects a cautious adjustment in positioning as traders weigh the likelihood of a rate cut from the US central bank.

The slight uptick in the Canadian dollar comes against a backdrop of relative stability in broader risk sentiment, with market participants largely pricing in a 25-basis-point rate cut by the Federal Reserve.