Ahead of Wednesday’s the Bank of Canada (BOC) monetary policy meeting, the Bank of America (BofA) came out with its event preview suggesting a challenge to the further Canadian dollar (CAD) strength.
“We expect the Bank of Canada (BoC) to remain on hold on 9 June, waiting for the economy to get out of its current rough patch and for inflation to eventually subside. That is, we do not expect the Bank to change either its policy rate or its pace of bond purchases at this time," said BofA analyst.
The US bank also said cites downside risk to the BOC’s statements while citing hopes of the Canadian Treasury yields’ weakness.
Read: USD/CAD struggles to defend 1.2100 with eyes on BOC