USD/CAD: What’s The Post-BoC Trade? – Nomura

The Bank of Canada raised rates and also pushed forecasts and expectations higher. USD/CAD tanked[1]. Can the C$ continue higher?

Here is their view, courtesy of eFXnews:

Nomura Research continues to look for another BoC rate hike by December after the central bank raised the target for the overnight rate by 25bp to 0.75% at its July 2017 meeting.

“From here, we are of the opinion that the BoC’s positive tweaks to its growth outlook and cautious optimism that inflation will pick-up points to further, albeit gradual, policy normalisation over time,” Nomura argues.

Fundamentally, this monetary policy impulse should continue to underpin the CAD.

And based on the still-robust momentum in the underlying economy and Canadian labour market, we would look to sell USD/CAD on rallies up towards 1.30 in the near term,” Nomura advises.

For lots more FX trades from major banks, sign up to eFXplus[2]

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

Get the 5 most predictable currency pairs[3]

from Forex Crunch

from Online Forex Trading Resource
View thesource article here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s