The Canadian dollar enjoyed the hawkish tone coming out of the BOC, as well as the recent rise in oil prices. What’s next?

Here is their view, courtesy of eFXnews:

Barclays Capital Research argues that it is unlikely for CAD to get further support from monetary policy expectations as the BoC enters the blackout period before the July 12 meeting.

“We believe a sustainable inflation close to target is difficult to attain given the lack of price pressures and subdued wages.

We think it is premature for the BoC to tighten and would fade market excitement,” Barclays argues.

In terms of this week’s drivers, Barclays notes that oil price gyrations, US and domestic data, including May building permits, international trade, Markit manufacturing PMI and the dual employment report on Friday, are likely to drive CAD.