For CAD FX, all eyes will be on Wednesday, with the BoC meeting at 14:45 CET, where markets and consensus favour a 25bp rate cut, Danske Bank's FX analysts Kristoffer Kjær Lomholt and Filip Andersson report. 

USD contunues to weaken

"Likewise, we expect the BoC to continue its easing cycle, cutting the policy rate by 25bp to 2.75% to ensure that the economy is well-prepared for the impact of US tariffs. Hence, tariffs continue to weigh heavily on the Canadian economy and CAD FX. Looking ahead, we project USD/CAD to tick down to 1.41 given stretched short CAD positioning alongside continued broad USD weakening."