CAD: ‘Buy The Rumor, Sell The CAD’ – Credit Agricole

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The Canadian Dollar is awaiting the verdict from the Bank of Canada but we already know they will raise interest rates. What’s next for the loonie?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB discusses CAD outlook around tomorrow’s BoC July policy meeting.

“With markets pricing in close to 80% probability of the BoC hiking this week, we see limited currency upside risk, at least in the short term. This is largely due to the view that the central bank may consider a “dovish hike”, which could easily lead to a ‘sell-the-fact’ reaction in the currency.

This makes sense when considering that trade-related uncertainty still calls for some caution, even though the central bank has stressed politics has only a marginal impact on the decision-making process,” CACIB argues.

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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 the 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.

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