FXstreet.com (Barcelona) - The Loonie is losing ground against its fellow neighbor on Tuesday, as risk aversion is weighting on the risk-associated assets and the comm-bloc currencies, ahead of the BoC interest rate decision.
According to Camilla Sutton, Chief Currency Strategist at Scotiabank, “The statement is likely to be less hawkish, which is likely to push USDCAD higher; however, since the October 15th speech by Govenor Carney, markets have had time to digest the expected change. In addition the BoC growth outlook is likely to be shifted lower… However, the real risk is that much of this has been priced in and that USDCAD does not jump above parity”.
According to Camilla Sutton, Chief Currency Strategist at Scotiabank, “The statement is likely to be less hawkish, which is likely to push USDCAD higher; however, since the October 15th speech by Govenor Carney, markets have had time to digest the expected change. In addition the BoC growth outlook is likely to be shifted lower… However, the real risk is that much of this has been priced in and that USDCAD does not jump above parity”.
