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The USD/CAD will look to the Bank of Canada (15:00 GMT) for further directionality, with a breach of the 1.2600 to 1.2750 range potentially at hand, economists at OCBC Bank inform.

See –  Bank of Canada Preview: Three reasons why the BOC may unleash C$ strength

Key quotes

“Policy tweaks are not expected. They should continue to sound optimistic, and perhaps lay down some groundwork for a reduction in asset purchases (at C$4b/week now) in the coming meetings. This would put the BoC way ahead in terms of the pull-back of monetary stimulus, and underlies our bias for firmer CAD structurally.  

“There is potential for the USD/CAD pair to breach the 1.2600-1.2750 range, pending the market read on the BoC decision.”