Ahead of Wednesday’s Bank of Canada (BOC) monetary policy decision, Bank of America (BofA) cites the downside risk for the Canadian dollar. The investment bank’s latest analytics said, “We expect the Bank of Canada (BoC) to present a significantly more constructive outlook for the Canadian economy on 21 April, but without changing its current monetary policy stance: rates at 0.25%, same forward guidance and purchases of at least C$4bn per week.” The US bank also expects the BOC to “announce a roadmap on adjustments to the pace of government bond purchases, to start tapering as soon as in July once it is clearer that the recovery is well underway.” Concerning the market reaction, the BofA said, “We believe risks are skewed toward disappointment in the rates and FX market, which is leaning toward taper at this meeting.” “We continue to expect USDCAD to retrace higher to 1.29 in 2Q, as the result of an additional leg of broad-based USD strength, commodity price consolidation and a modest rebuild in the CAD risk premium reflecting moderation in global risk appetite,” BofA added to the notes. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/JPY Price Analysis: Bulls holding the fort at critical daily support FX Street 2 years Ahead of Wednesday's Bank of Canada (BOC) monetary policy decision, Bank of America (BofA) cites the downside risk for the Canadian dollar. The investment bank's latest analytics said, "We expect the Bank of Canada (BoC) to present a significantly more constructive outlook for the Canadian economy on 21 April, but without changing its current monetary policy stance: rates at 0.25%, same forward guidance and purchases of at least C$4bn per week." The US bank also expects the BOC to "announce a roadmap on adjustments to the pace of government bond purchases, to start tapering as soon as in July once… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
