Commodity prices critical for the Loonie - Scotiabank

Analysts at Scotiabank explained that commodity prices remain critically supportive for the CAD and continue to provide an important offset to the renewed widening in interest rate differentials. 

Key Quotes:

"Domestic rate expectations remain unchanged with OIS pricing nearly one full 25bpt hike by July and another by October. The near-term risk lies with the broader tone as market participants are unlikely to materially respond to the release of Wednesday’s second-tier building permits data. Measures of sentiment are bearish and risk reversals already reflect a sizeable premium for protection against CAD weakness."