Long USD/CAD ahead of the BoC meeting - ING

Research Team at ING, suggests that the “Goldilocks” payrolls report last Friday has provided another layer of support to the risk environment.

Key Quotes

“While the US economy is in much better shape than markets were appraising, the wage growth miss is likely to keep the Fed in wait-and-see mode. Prospects of looser global monetary policy for longer (and an effective flattening of global yield curves) is also keeping risk supported. With the ECB and BoJ meeting later this month, and the BoE likely to start easing as early as this week, we suspect that sentiment may remain buoyed. We like long USD/CAD ahead of the BoC meeting (Wed), with oil prices also under pressure.”