USD/CAD is rising on the souring mood in markets and the air-pocket in oil.
There is a lively debate about Tuesday’s Bank of Canada decision. Expectation for a rate hike/cut are nil but the BOC is likely to alter its forward guidance.
The statement currently reads:
Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate
Reuters surveyed forecasters and 15 expect the BOC to tone down the hawkish bias while 21 see no change. The consensus for the first BOC hike has also been pushed back to Q4 2013 from H2 2013 previously.
S&P 500 futures down 5 points, USD/CAD likely to challenge 0.9830 on a weaker open.
