Today is a US holiday which generally makes for an illiquid market in USDCAD which in turn could lead to some exaggerated moves. Not much in the way of economic releases this week although Wednesday’s Bank of Canada interest rate statement and Monetary Policy Report will be eagerly pored over. We would expect the tone of these to be dovish (risks to economy, weak oil, weak jobs, falling inflation etc) and point to no interest rate hikes until possibly 2016 which could well be the catalyst to push the Loonie firmly through 1.20 and heading towards 1.22 .
