The Bank of Canada will hold a monetary policy meeting tomorrow. TD Securities analysts believe the primary scenario assumes that the central bank will maintain the status quo and make it clear that the rise in inflation is temporary. He could also announce the transition to the reinvestment of QE from November.
Key points:
“We expect the Central Bank to note that the rise in inflation is temporary and will also maintain the status quo with regard to the rate. He could also announce the transition to the reinvestment of QE from November.
We believe the USDCAD pair will rise after the meeting. While the subject of stagflation was, oddly enough, helped by the CAD, its rise was probably excessive. The CAD is the most overbought currency among the B10 currencies. The 1.2850 level is favorable for selling. “
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