BoC delivers support to CAD - Scotiabank

Analysts at Scotiabank explained that the Bank of Canada remains a core driver, delivering support to CAD as market participants move to price in greater tightening following this week’s comments from Gov. Poloz and SDG Patterson. 

Key Quotes:

"Specifically, the focus is on the removal of the 2015 stimulus (50bpt cut) delivered in response to the oil price shock."

"The implied probability of a July hike is pushing toward 70% and markets are still only pricing roughly 37bpts of tightening over the next 12 months, providing additional upside risk to CAD."