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.
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