CAD: Next Week BoC Not Likely A Significant Mover For CAD; Short EUR/CAD Attractive – TD

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Here is their view, courtesy of eFXdata:

TD Research discusses CAD outlook into next week’s BoC policy meeting. TD sees USD/CAD around 1.3180 near-term, while likes a short EUR/CAD exposure around the meeting.

“We expect the Bank to downplay recent economic strength in the face of worsening global trade tensions. Concerns over US-China relations should also be reflected in the forward-looking language, where we expect subtle dovish tweaks,” TD projects.

A steady, yet dovish, the tone may not translate into a significant market-moving event for the loonie. Market expectations, valuation, and positioning help to guide our view that USDCAD should be trading around 1.318, suggesting another hold of the 1.33 level. Ahead of next week’s ECB and BoC meetings, we like holding downside exposure to EURCAD,” TD adds.

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