Credit Agricole CIB Research discusses its expectations for next week's BoC policy meeting,.
"Global equity markets and oil prices remain the main driver of the CAD. In the coming week, however, attention will shift to the BoC meeting. While the BoC left open the option to increase its asset purchases at its July meeting, economic data has been evolving broadly as the central bank expected and in some cases a little better than expected," CACIB notes.
"So, our economist does not think the BoC will feel pressured to ease policy further at this stage. So we expect the BoC to leave its policy parameters unchanged.
Where there is potential for CAD volatility around the BoC meeting is if the central bank hints at any changes to its policy making structures following the Fed’s move to AIT," CACIB adds.