Preview of the Bank of Canada monetary policy meeting Wednesday 7 December, +25bp expected

Earlier previews are here:

• What’s priced in for the BOC rate decision
• Goldman Sachs expects the Bank of Canada will hike by 50bp on Wednesday, notes 2 risks

This snippet is a little more from TD on their experctation:

• expecting a 25 basis points rate hike, but add that this is a line ball call
• see the BoC terminal rate at 4.25%
• therefore are forecasting the BoC to signal that it expects to lift rates further
• “The BOC is unlikely to offer much to move the needle for CAD. CAD underperformance on crosses has occurred quickly and looks tactically stretched. A case for a reversal can be made, but we will look to fade that strategically given idiosyncratic drags.”

CAD update:

This article was written by Eamonn Sheridan at forexlive.com.