CAD weakness should not prevent BoC from cutting rates – BNPP

By FXStreet FXStreet (Delhi) – Research Team at BNP Paribas, suggests that even as USDCAD rose to another multi-year high on Friday, we don’t think CAD weakness will prevent the BoC from cutting rate by 25bp on Wednesday.

Key Quotes

“Updated crude oil forecasts from our commodity strategy team suggest prices will recovery only moderately from current levels over the next three quarters, implying the BoC needs to do more to stimulate the economy. Markets are now pricing in a 70% chance of a cut this week and the CAD currently stands as the largest short in G10 FX according to our positioning analysis with a score of -37.”
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Source:: FX Street