CAD flows: CAD edges lower after neutral BoC statement

USD/CAD is a little higher and CAD yields a little lower after the BoC left rates unchanged, as was very much expected. There is no particular bias in the comments, and since the CAD curve was pricing in some risk of tightening later next year, the neutrality of the commentary may be seen as mildly CAD negative, together with the indication that Q4 GDP growth is likely to be weak, albeit with stronger domestic demand. All in all the market is likely to maintain its view that he next move in rates will be up for now, and that should prevent any major rise in USD/CAD unless the Fed proves a lot more hawkish than expected later.