The Bank of Canada sent Dollar/CAD to 1.28, the highest level since July on its cautious approach. What’s next? Here is the view from CIBC:
Here is their view, courtesy of eFXnews:
CIBC Research comments on today’s BoC October policy decision:
“The Bank of Canada is highlighting that a stronger Canadian dollar is already weighing on their export outlook. Governor Poloz and co. go on to say that although the economy could be sitting at a zero output gap currently, a weak trend in wages suggests that slack in the labor market leaves them room to keep rates at accommodative levels.
Today’s statement is clearly a move to a more dovish stance by Bank of Canada, and we find strong support to keep our forecast for a next move higher in rate to come only by the spring of 2018,” 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.
Share
