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The Canadian dollar found some stability amid rising oil prices and a focus on the US. It now faces the Bank of Canada. What can we expect? Here is the view from TD:

Here is their view, courtesy of eFXnews:

TD FX Strategy Research discusses USD/CAD outlook into the BoC meeting on Wednesday.

We don’t see any real potential of a surprise hike this week  but we suspect it will serve as a springboard for a hike next month,” TD argues.

For USDCAD, TD notes that pair’s response to Friday’s data was significantly above its average daily move as the report shows Canada’s economy continues to generate healthy job growth, with wage growth jumping to a 2.8% annual pace from 2.4% prior.

“This backdrop leaves us holding on to our short USDCAD* trade into the BoC.

Next key level to watch is 1.2590 but a break of the 1.2715 encourages further downside,” TD advises.

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