The Bank of Canada is expected to raise rates by 25 bps in today's meeting, here's BofAML's take on the event

They mention that they see the BOC will follow through with a hike in today's meeting and if delivered, "USD/CAD may sell off temporarily" given that the event "is about 80% priced".

They also add that, "If BOC opts to wait given NAFTA risks and remaining uncertainty regarding the data, we think USD/CAD could potentially rally by around 2% in a straight line. The tone of the statement will determine the extent of follow through, in our view".

"We continue to see upside risks to USDCAD over the next several weeks. We are highly skeptical that the next month will be as favorably bearish USDCAD as the last", BofAML argues.

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