Watching BOC, Fed diverge on rates next week

With the BOC decision coming up, it's interesting to consider the divergence narrative potentially strengthening between them and the Fed. We saw some weaker Canadian jobs data recently, contrasting with the fairly resilient US numbers. If the BOC strikes a more dovish tone or signals a pause, while the Fed remains steadfastly hawkish, that could put some pressure on CAD pairs. I'm keeping an eye on $USDCAD in particular, looking for potential entries if that spread widens.

Also curious to see how the market reacts to any language around inflation expectations from the BOC. If they signal comfort with recent declines, it could underscore the difference in central bank mandates and current economic conditions compared to the US. Still positioning watchlists for continued dollar strength against currencies where central banks might be blinking first on the tightening cycle.