Barclays Research discusses CAD outlook around tomorrow's BoC policy meeting.

"We expect some CAD upside from a 25bp hike by the BoC (Wed) that is not completely priced in. However, CAD gains from underpriced BoC hikes in the past have been modest and short-lived and sustained gains depend on the risk backdrop," Barclays notes.

"Beyond the tactical considerations around this week’s meeting, CAD remains first and foremost a risk/SPX trade. Accordingly, sustained gains versus the US dollar in particularly likely require S&P 500 index catch-up with equity markets abroad," Barclays adds.