BoC announcement is due at 1500 GMT.
This snippet via BoA's preview:
- Says the BoC is skewing hawkish on rates and forex, and thus BoA are looking for CAD to outperform
- The Bank will have to acknowledge much better growth than it anticipated without "pushing back on the recent fierce movement in rates". Adds that this will be a difficult balance to strike and thus the risk is the BOC sounds "too constructive"
BoA look for a short-term risk of USD/CAD re-testing 1.25 (this is BoA's year-end target)
- but could head to 1.29 in H2 "largely a reflection of broad USD strength driven by US economic decoupling, the result of extremely strong fiscal stimulus"
- A downside risk to this 1.29 view is continued commodity price appreciation
