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

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. 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.

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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.