Risk BoC sounds more balanced on falling oil prices - RBS

FXStreet (Bali) - According to RBS FX Strategy Team, there is a risk that the Bank of Canada sounds more balanced on the oil price drop than the market anticipates.

Key Quotes

"The Bank of Canada decision is due tomorrow, and we think the BoC will revise down its growth and inflation forecasts to reflect in-part lower commodity prices, something that the market is likely well prepared for."

"Still, because of the importance of the US recovery and the resilience of the housing market, there is a risk that the Bank of Canada sounds more balanced on the oil price drop than the market anticipates. This disappointment may prove to be a positive for the CAD through tomorrow's decision."