CAD: Another insurance cut?

Incoming economic data will be closely followed by market participants to assess the next BoC move. After delivering an additional 25 basis points cut in the reference rate last week (for a total of 50bp year-to-date), it will be interesting to see if this is another "insurance" move (as Poloz catalogued January's cut), or if the Central Bank could commit to further measures. 

The take is that the BoC will fall again behind the curve and will not deliver immediately another cut, but that they will remain vigilant and probably will engage again later in the year in further monetary easing measures as economic conditions continue to disappoint BoC's projections. 

"The timing should be highly sensitive to oil price developments for which we remain bearish in the short and medium term. As such, we are confident that the Canadian dollar will continue to underperform most of its peers, and we see some risk that our forecast looks somewhat conservative for the rest of the year (1.29 in Q4 2015)," says Barclays.