USD/CAD: Towards 1.30 On BoC Hike Or 1.30 On A Hold Next Week – BNPP

The Canadian Dollar managed to stabilize after a few turbulent weeks. What’s next for the loonie?

Here is their view, courtesy of eFXdata:

BNP Paribas Research discusses USD/CAD outlook around next week BoC policy meeting and thinks that an expected rate hike next week is like;y to reinforce USD/CAD range.

“The Bank of Canada meets next week, with expectations having fluctuated considerably over the past two weeks.

Rates markets are pricing a more than 80% chance of a hike and if delivered this will likely tend to reinforce the broad range in USDCAD, helping guide the pair back towards 1.30 as Bank of Canada tightening matches Fed policy for now.

A decision to hold policy unchanged seems likely to set up another test towards 1.35,” BNPP argues.

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