We expect no change to BoC policy – TD Securities

Previewing the Bank of Canda's (BoC) meeting on Wednesday, TD Securities analysts said they don't expect the BoC to make any changes to its monetary policy.

Key quotes

"Forecasts will be key to the overall tone while the statement should emphasize heightened uncertainty and disinflationary pressures amid a widening output gap."

"USDCAD is starting to base out and we expect a steady 1.35-1.40 range in weeks ahead. A modest consolidation in the USD would support a near-term shift towards the upper end of that range. Yet, tactically, we think it would lend support to CAD on crosses like AUD, where positioning and valuations are more extreme."