The Canadian Dollar rocked and rolled on NAFTA headlines while the BOC had a surprisingly limited impact. What’s next?
Here is their view, courtesy of eFXdata:
MUFG Research discusses CAD outlook and highlights the importance of this month’s direction for CAD performance into year-end.
“We are currently forecasting that the BoC will raise rates again next month which is based on the assumption as well that the US and Canada will reach a trade agreement by the end of this month.
However, if attempts to reach a trade agreement break down, another BoC rate hike as early as next month would become less likely. A reversal of October BoC rate hike expectations would add to downward pressure on the Canadian dollar if trade negotiations fail.
It further highlights why this month is pivotal for Canadian dollar performance heading into year end,” MUFG argues.
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