CAD in focus: The market is wanting the BoC to turn dovish
Will the BoC grow the wings of a dove?
The Canadian dollar is moving on expectations of what the BoC will do next. The Bank is standing out as a lone hawk amongst the world's major central banks and they disappointed the doves in not turning dovish in their last rate meeting. Inflation remains within their target range, and GDP recently surprised to the upside. This has led to market expectations for an October rate cut now falling to ~17%.
This means that any dovish comments from the BoC will drive the currency lower as well as any significant data indicating that the Canadian economy is slowing. On the other hand more hawkish comments and/or data points will put bids into the Canadian dollar and further reduce chances of an October rate cut. CAD CPI and retail sales out next week.
On top of this, remember that oil is key driver for CAD and whenever you are trading CAD have one eye on the oil charts at the same time.