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Bank of Canada Preview: Dovish surprise to lift USD/CAD


4/20/2021 11:27:48 AM GMT
Bank of Canada is expected to leave its policy unchanged at 0.25%.
Investors await adjustments to BoC’s asset-buying program.
USD/CAD is likely to react more significantly to a dovish surprise.
The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.
BoC set to lower QE purchases
The BoC’s Business Outlook Survey for the first quarter showed that the business sentiment continued to improve and the outlook indicator jumped to its highest level since 2018. Many firms reported that the negative impact of the coronavirus crisis on their activity was already behind them. ....

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