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USDCAD trades 20 or so pips higher....>

DOLLAR-CANADA
DOLLAR-CANADA: USDCAD trades 20 or so pips higher at ~1.2570 heading into
today's BoC decision, with the overwhelming majority expecting the BoC to stand
pat, and markets pricing a mere ~20% chance of a hike.
- The Bank's economic forecasts and assessment of the economy/risks surrounding
it (via the quarterly MPR) will be scoured over ahead of Governor Poloz's press
conference.
- The recent BoC business survey & uptick in inflation provide signs of optimism
for the BoC, but NAFTA uncertainty continues to linger over the economy.
- It is worth noting that there is some USD 2.07bln worth of 1.2600 USDCAD
option expiries set to roll off at today's 10AM NY cut, with an additional USD
910mln of 1.2585 options set to roll off.
Technical levels of interest include the 200-DMA (1.2623) & the April high
(1.2624), while downside points of interest include scattered demand from 1.2540
into 1.2500.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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