CAD: BoC To Stay On Hold Next Week; USD/CAD Towards 1.34 In Q3 – BofAML

The Canadian Dollar struggled with NAFTA hopes and lack thereof. The focus now shifts to the BOC decision. What’s next?

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch Research discusses it expectations for next week’s BoC September policy meeting

“We expect the BoC to remain on hold on 5 Sep, but to leave the door open to further hikes. We expect the next hike on Oct. Across the next four central bank meetings we anticipate two hikes from the BoC and two hikes from the US Fed.

We expect 10y CAD at 2.65% by year-end. Our revised USDCAD forecast is 1.34 in 3Q and 1.37 in 4Q,” BofAML argues.

For lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Leave a Reply