CAD: Out Of Consensus Call: We See BoC On Hold This Week; USD/CAD To Squeeze Higher – TD

TD Research continues to maintain its call that the BoC will leave rates on hold at this week’s meeting.

"We still think it is likely to be a much closer call than current market pricing suggests and look for the Bank to deliver a hawkish hold instead of a 25bp rate hike.

Given that the rates market is pricing in close to a 100% of a hike and the FX market appears to have front-loaded a more hawkish outcome we continue to see scope for USDCAD to consolidate on our out of consensus call….This leaves us looking for a squeeze higher in USDCAD," TD argues.

Source: TD Securities ResearchOriginal Article