CAD May Fall; BOC Likely Less Hawkish - Barclays

The CAD may fall with the focus on the Bank of Canada's rate announcement later, which is likely to be less hawkish than seen earlier, Masafumi Yamamoto, chief FX strategist at Barclays Bank in Tokyo, says in a note. "The Bank of Canada was biased toward tightening at the last April 17 meeting, but given the recent Greek situation, concerns over China's slowdown, and the trend of U.S. economic indicators falling below expectations, it is highly likely that its hawkish stance will recede although a rate cut isn't expected," he says. Economists widely expect the rate to remain at 1.00%. The U.S. ISM non-manufacturing report, for which the house expects weaker results, and the recent falling trend in crude prices, would add to downside risk for the CAD, he says. The USD/CAD is at 1.0374.

CAD May Fall; BOC Likely Less Hawkish - Barclays

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