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USD/CAD: Shifting Our BoC Hike Call; What’s The Trade? –

The Canadian dollar has been in retreat mode since it the post-hike peak when USD/CAD reached the 1.20 handle. What’s next for the BOC? Here is the view from TD:

Here is their view, courtesy of eFXnews:

TD Research has pushed back its call for a BoC hike from Oct to Dec this year, and shifted its call for BoC fourth hike next year from Jan to Mar.

Against this backdrop, TD has upgraded its USD/CAD view and forecast on the ground that the diminished scope of a more front-loaded tightening cycle favors a bit less downside in USD/CAD.

“At the same time, the short-term setup probably supports a stronger bias in USDCAD, although  we would look to sell into rallies.

Ultimately,  we suspect that we are now sitting in a 1.20 to 1.25 range and would look to fade each of those extremes into year-end,” TD 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.