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Analysts at TD Securities explained that the Bank of Canada is widely expected to deliver a 25bp hike.  

Key Quotes:

“The Bank should reiterate that hikes will be gradual and guided by incoming data, but we do not expect additional forward guidance. Though GDP and CPI forecasts should be stable, FX focus will be on the Bank’s messaging over prospective risks to the outlook, including trade. Note here the Bank will be incorporating tariffs already announced into its projection.”

“We think the good news is already in the CAD price, with risk/reward setting up for an eventual return to the USDCAD YTD highs. We have entered a long position and note daily uptrend support near 1.3050 should be formidable.”

“We remain (very) cautiously optimistic on cable ahead of Thursday’s Brexit “white paper”. A daily close below 1.3205 would have us revisit our view, but we think dip buying could be rewarded. A move higher from here could target a test of 1.3472.”