Derek Halpenny, European Head of GMR at MUFG, suggests that the Bank of Canada holds its monetary policy meeting today and we, like the market, expect no policy change. Key Quotes “Today is more significant though in that we will also get the release of the Monetary Policy Report and a press conference by Governor Poloz. The key change that should see some modest upward revisions to economic growth is the inclusion by the Bank of Canada of the impact of the budget announced by the new government in March. A commitment to run fiscal deficits throughout the parliament along with the larger rebound in crude oil prices may mean the BoC concludes that the output gap closes slightly more quickly than anticipated in January. USD/CAD we feel is well priced for this outcome today and the 12% drop in USD/CAD since January should mean limited downside reaction this afternoon.” For more information, read our latest forex news.