Credit Suisse analysts expect the USD / CAD, which is trading at 1.3523 before the BoC meeting, to continue to follow the broader USD, which is consistent with a test of the highs of the second semester 2019 around 1.3320-1.3340 before July 15. BoC meeting.
Don’t Miss: Six Big Banks Await BoC Interest Rate Decision
Key quotes
“Our bias beyond today’s meeting and before the meeting of July 15, remains slightly constructive on the CAD, which leaves us seeking to mitigate rallies in USD / CAD above 1.37 and aim for a new test of the area 1.3320-1.3340 where the crossing stalled. repeatedly in 2019. “
“We see very limited risks of stimulus or abrupt reduction of fiscal stimulus measures in Canada in the coming months, while a more considerable risk emerges in the United States on this front in mid-July, by-product recent social unrest. ”
“With the benchmark spread for WTI-Western Canada Select oil still less than $ 10 billion, and without the rail bottlenecks that have plagued the sector for years, we believe Canada could benefit fairly quickly and directly from a new vigor in oil prices. . “