While we’re still waiting for the political gridlock in the US to resolve and the Trump administration to deliver on its campaign agenda, the focus has shifted to the Bank of Canada’s (BoC) hawkish turn in June, which led to the Canadian yield curve repricing higher and meaningfully strengthening the Canadian dollar. The BoC focused the change on broadening improvement in growth and the diversity of the Canadian economy to adjust to the oil shock. As such, the BoC believes it has become appropriate to remove some monetary policy accommodation.