The Bank of Canada is not going anywhere fast with raising interest rates. This has implications for the loonie going forward.
Here is their view, courtesy of eFXnews:
CIBC Research discusses its reaction to today’s BoC December statement and notes that it didn’t offer a clearer call on just how long they will be waiting and seeing before raising rates again.
“Further rate hikes are still coming, but even if they move ahead of our April target, that needn’t mean that we’ll see more than 50 basis points in total next year, given the Bank’s emphasis on being cautious on that front…
Hawks may be slightly disappointed by the lack of a clear signal of a January hike, but that really isn’t their style, and instead, we like others will have to watch upcoming data on October GDP and December employment to fine tune forecasts for when the next hike comes,” CIBC argues.
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.Get the 5 most predictable currency pairs