Forex Flash: CAD awaits BoC decision, correction to 1.02 viable – TD Securities

TD Securities analysts see a mixed bag so far today in the FX space and say the CAD is marking time ahead of the BoC policy meeting. "We think there is scope for the BoC to soften its language and acknowledge weaker growth trends", wrote analysts Shaun Osborne and Greg Moore, also aware of the (big) risk of a shift to a more obviously neutral policy.

As investors await developments, the currency has moderated its downward slide. "Absent a surprise from the BoC tomorrow, we may well see the current consolidation extend a little further", they continued, adding that they "think there is scope for a correction in the recent rally to the 1.02 area but the broader bias is bullish and we continue to view modest USD dips as a buy".