The Bank of Canada (BoC) held off on any major changes at the September FAD with no change to the overnight rate (0.25%), QE (min C$5 B/week) and forward guidance. However, the rest of the statement was balanced to cautiously upbeat, noting the recovery has been stronger than anticipated. The lack of surprise in the BoC's statement will keep the focus on the global story for USD/CAD. Global factors account for about 90% of this year's move and point toward a retest of 1.34, per TD Securities.


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