Societe Generale Research discusses its expectations to today's BoC April policy decision. 

"The Bank of Canada statement may not set the world on fire. No-one expects a change in rates. However, futures traders have built up the biggest short CAD position since January 2019, just after the last Fed rate hike of the cycle that started in late 2016. USD/CAD peaked above 1.36 after that hike, before falling in 2019. USD/CAD tracks relative US-Canadian rates, but by far the biggest driver of that spread, is the trend in US rates - and they've peaked," SocGen notes.

"We think USD/CAD will drift lower in the coming months – even if a bland Bank of Canada policy statement don’t point to fireworks today," SocGen adds.