USD/CAD Rises Ahead of BoC Decision Amid Hawkish Fed Expectations

The USD/CAD currency pair is rising ahead of the Bank of Canada's (BoC) interest rate decision, expected later today. The market expects the BoC to leave rates unchanged at 2.25%, as it navigates between economic growth concerns and inflationary pressures.

Canada's manufacturing sector expanded in August, but trade tensions may threaten this growth. Meanwhile, the Federal Reserve is anticipated to hike interest rates this month by 25 basis points, with a 70% probability according to market expectations.

The U.S. dollar is gaining on safe-haven demand and rising Treasury yields. The ADP payrolls report later today will provide further clues about the Fed's decision.