Barclays Research discusses CAD outlook and maintains a bullish bias on CAD over the coming weeks.
"We retain our constructive view on the CAD and see scope for the USDCAD to keep grinding lower, supported by higher terms of trade under our baseline outlook for resilient growth, strong exports and elevated oil prices. Recently market expectations for hikes by the BoC have gone up in line with the Fed and are likely to move in tandem going forward," Barclays notes.
"We think that the BoC can turn incrementally more hawkish at the April 13 meeting given concerns around high inflation and the risk that longer-run inflation expectations could drift upwards," Barclays adds.
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