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CAD: Bringing Forward Our BoC Hike Call To Q4; Where

The hawkish tone from Wilkins and then from Poloz pushed the Canadian dollar higher. Will this hawkishness translate into a hike?

Here is their view, courtesy of eFXnews:

CIBC FX Strategy Research notes that CAD was lent support last week from a sudden change in tune by the Bank of Canada, as Senior Deputy Governor Wilkins and then Governor Poloz hinted that interest rates would be rising soon.

“As a result,  we’ve brought forward our forecast for the BoC’s first hike to Q4 of this year. However, the biggest impact on the CAD may have already been seen, as a hike in rates in Canada is now more fully priced into markets than a further move by the Fed,” CIBC argues.

As such,  CIBC only sees modes CAD appreciation towards 1.31 by year end.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.