Earlier previews are here:
- What's priced in for the BOC rate decision
- Goldman Sachs expects the Bank of Canada will hike by 50bp on Wednesday, notes 2 risks
This snippet is a little more from TD on their experctation:
- expecting a 25 basis points rate hike, but add that this is a line ball call
- see the BoC terminal rate at 4.25%
- therefore are forecasting the BoC to signal that it expects to lift rates further
- "The BOC is unlikely to offer much to move the needle for CAD. CAD underperformance on crosses has occurred quickly and looks tactically stretched. A case for a reversal can be made, but we will look to fade that strategically given idiosyncratic drags."
CAD update:
