USD/CAD: Upside Risks For CAD From This Week's BoC & MPR - ING

ING Research discusses CAD outlook flags upside risks for CAD from this week's BoC policy meeting on Wednesday.
"While we expect the BoC to stay on hold; the upcoming meeting will also see the release of the central bank's latest set of economic projections (MPR). April MPR's are of particular significance given that the BoC will give us its annual update on the supply-side of the economy - including estimates of potential GDP growth and the neutral interest rate (r-star).
The risks to both lie to the upside if based on Governor Poloz's speech last month. We feel only a clear hawkish signal - one that all but confirms a May rate hike - would drive CAD materially higher in the week ahead," ING argues.