Analysts at TD Securities noted that they expect the Bank of Canada (BoC) to raise the policy rate by 25 basis points in December but noted that this was admittedly a "close call."

Terminal rate at 4.25%

"We see the BoC's terminal rate at 4.25%, and as such expect the BoC to signal that it expects to lift rates further."

"The BOC is unlikely to offer much to move the needle for CAD. CAD underperformance on crosses has occurred quickly and looks tactically stretched. A case for a reversal can be made, but we will look to fade that strategically given idiosyncratic drags."