CAD: Boring is Good
The Bank of Canada is unlikely to register any major changes to policy on Wednesday. With external demand drag arising from developments south of the border, simply not revising the growth outlook lower will probably be celebrated. Nonetheless, as we have highlighted in the past, despite maintaining the largest bilateral trading relationship in the world, the Canadian economy continues to desensitise itself to the US, especially amid the ongoing rebalancing of domestic growth composition. Even if growth could underwhelm policy expectations, there is a case for a structurally positive picture which the currency is failing to price.
Read the full report: UBS