Search ForexCrunch

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.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.