CAD: Expect status quo from BoC - RBS

FXStreet (Delhi) – Paul Robson, Senior FX Strategist at RBS, suggests that an unexpected rebound from technical recession in Q3 suggests that Bank of Canada leaves the benchmark rate unchanged at 0.5% this week.

Key Quotes

“The central bank will not release new forecasts alongside next week’s decision, so there will be relatively little new information. Barring any shocks from the OPEC meeting, the CAD may drift a little higher against European and Asia regional currencies as at the margin the Canadian economy should benefit from stronger US domestic demand. On a multi-month view, we see the CAD coming under renewed pressure from a yet lower oil price.”