“In Canada, the BoC will leave interest rates on hold and likely also make few changes to its economic outlook. Even though recent readings on trade and employment have been encouraging, they were only enough to bring our tracking forecast for Q4 GDP back to the Bank’s 1.5%. With few firms reporting “concrete effects” from the US elections on their sales expectations, the Bank’s Business Outlook survey did little to clarify their view of what President-elect Trump will mean for Canada…We argued yesterday that the BoC are unlikely be unconcerned by the current value of the currency. However, should we decisively breach and close below 1.30, we have not closed below the level since early September, this would risk the topic of the currency moving up the agenda in the BoC’s MPR press briefing tomorrow. While investors may continue to moderate USD long positions into the Presidential inauguration, USD CAD looks increasingly oversold near recent 1.3030 lows”.
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