The USD/CAD currency pair held in proximity to a 5-week high of 1.3788 on Wednesday with focus on central bank policy decisions.

The Federal Reserve is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% at its July 29th-30th meeting.

US President Trump said last week he held a positive discussion with Fed Chair Powell, indicating the central bank’s chief might be inclined to reduce interest rates.

Investors will also be paying close attention to the press conference with Fed’s Powell for clues over the timing of any future interest rate cuts.

The minutes of the FOMC’s June meeting showed policy makers were divided on the timing and scale of potential interest rate cuts.

Though the majority of Fed officials expected some easing later this year, views ranged from favoring a rate cut as soon as July to favoring no cuts at all by the end of 2025.

Fed Governors Christopher Waller and Michelle Bowman, both viewed as potential successors to Fed Chair Jerome Powell, are expected to dissent at the July meeting.

Meanwhile, the Bank of Canada is expected to keep its benchmark interest rate intact at 2.75% at its July 30th policy meeting.

June’s decision has been the second hold after 225 basis points of rate cuts in seven consecutive meetings.

The USD/CAD currency pair was last up 0.13% on the day to trade at 1.3787.