FXStreet (Edinburgh) - Jakob Christensen, Chief Analyst at Danske Bank, sees crude oil dynamics and the BoC policy as the main driver for CAD in the next periods. Key Quotes “Notably the market is upping expectations of a Bank of Canada rate cut with some 15bp priced by autumn. The uptick in USD/CAD that has sent the cross above the 1.40 mark takes some pressure off the central bank as it helps to facilitate the rebalancing of the Canadian economy to an oil price that will stay lower for longer”. “BoC governor Poloz is due to speak this afternoon and the CAD will be very sensitive to any hints for or against a possible BoC move at the policy meeting on 20 January”. “Our base case is no further rate cuts but risks are certainly tilted towards the Fed-BoC divergence being spelled out further near term”. For more information, read our latest forex news.