Richard Franulovich, Research Analyst at Westpac, points out that the BoC Governor Poloz was cagey last week but on balance leant in favour of a July 11 hike, noting that the “big picture” favoured hikes and “we’ve said clearly that, given where the economy is, we’re in a situation where the economy will warrant higher interest rates”. Key Quotes “The initial read by markets was inconclusive but this has since swung in favour of a hike. The probability of a hike lifted to 80% from 50% in the ensuing days.” “USD/CAD will be whippy around the July 11 BoC MPR, though fresh fuel for a sustained up-leg is unlikely. The BoC will probably stress a gradual path, given trade uncertainties and high household leverage. A follow up hike of 25bps is largely priced into markets by year-end.” “Given that the BoC is unlikely to fuel expectations for faster hikes, trade tensions are building and Chinese growth is slowing, USD/CAD is likely to have a tough time breaking sustainably below 1.3000 in the near term.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD Technical Analysis: EUR/USD breakout above 1.1730 barrier post-NFP FX Street 3 years Richard Franulovich, Research Analyst at Westpac, points out that the BoC Governor Poloz was cagey last week but on balance leant in favour of a July 11 hike, noting that the "big picture" favoured hikes and "we've said clearly that, given where the economy is, we're in a situation where the economy will warrant higher interest rates". Key Quotes "The initial read by markets was inconclusive but this has since swung in favour of a hike. The probability of a hike lifted to 80% from 50% in the ensuing days." "USD/CAD will be whippy around the July 11 BoC MPR,… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
