There is growing talk of the Federal Reserve trimming rates. If this occurs, will the BoC follow suit?
Here is their view, courtesy of eFXdata:
Citi Research sees a scope for the BoC to cut rates if the Fed moves and cuts rates on increasing concerns from the negative impact from Coronavirus on the economy.
“CAD is through key resistance at 1.3330 with USDCAD currently trading above 1.3345 at the time of writing on the back of renewed oil weakness,” Citi notes.
“CitiFX Technicals sees room to head to the January 2019 high at 1.3565. We also flag that CitiFX Strategy sees scope for BoC to cut should the Fed move,” Citi adds.
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