The BOC rate announcement is set for 13:00 GMT. No rate move will be seen but the Bank assuredly warn that the strong Loonie is a risk to economic recovery. They will likely threaten to employ QE to weaken it, but the market doesn’t believe them. Neither do we. They can huff and puff, but they can’t blow the Loonie’s house in. Grin and bear it, folks.
USD/CAD has seen some position squaring ahead of the BOC meeting, with the market anticipating the BOC’s words. Look for strength to return later in the day.
