From the FXWW Chatroom: G10 Strategy sees USDCAD trading heavy going into the meeting, and favor CAD out performance on crosses (EURCAD, AUDCAD). Though new information since the last meeting is probably not enough for the bank to turn outright hawkish, a shift to less dovish tone is becoming more likely. Scenarios:
o 50% — Less dovish/Neutral
o 40% — Unchanged dovish baseline
o 10% — Hawkish
· My Econ thinks the Governing Council probably will slightly upwardly revise its growth forecasts to reflect recent developments in the data. The BoC is likely to keep interest rates fixed on Wednesday, despite lingering uncertainties.
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