TD Research discusses its expectations for tomorrow's BoC September policy meeting.
"We expect a hawkish hold by the Bank of Canada in September. The Bank will continue to emphasize a gradual normalization with a heavy focus on data dependency, but recent activity data has been encouraging.
In particular, in the statement we look for emphasis on housing market stabilization and strength in exports. We therefore expect the communique to have an optimistic tone.
Limited impact on CAD from a "hawkish hold" as NAFTA talks will dominate. CAD positioning risks grow as good news already in the price," TD argues.