According to Christian Lawrence, senior FX strategist at Rabobank, the Bank (BoC) had already shifted to the dovish side but the tone of the accompanying statement was a little more optimistic than the April meeting.
"We have been at pains to stress that the slowdown will continue with households being squeezed and investment and trade likely to remain lacklustre."
"The Bank of Canada still has hope and we still think this is false hope. Indeed, what the Bank sees as temporary, we see as more structural."
"We expect a 25bp cut at the April 2020 meeting and this is now fully priced in by the market. In terms of USD/CAD, a confirmed close above 1.35 opens up a test of the six-month 1.366 high but we tend to think 1.35 will hold for now."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.