The Canadian dollar enjoyed the hawkish hike as well as strong data in Canada in weak figures in the US. Has it gone too far? Is the C$ too expensive? Here is their view, courtesy of eFXnews: CAD Has Gone Too Far; What’s The Trade? – Nordea Nordea FX Strategy Research advises against ‘extrapolating’ BoC hawkish shift noticing that CAD has gone too far. “The Bank of Canada hiked rates fairly hawkishly in July which sent USD/CAD below 1.28. At minimum a period of consolidation is likely, given that the CAD is now substantially stronger than the BoC expected in its MPR. This represents a significant tightening of monetary conditions. Moreover, USD/CAD also (still) trades too low versus rate spreads and versus oil prices,” Nordea argues. “Indeed, the mixture of industrial metals rising, oil prices struggling and China credit expansion picking up suggests that AUD/CAD longs could offer decent risk/reward,” Nordea advises. CAD: Market Pricing For BoC Becomes Too Aggressive; Where To Target? – Danske Danske Bank FX Strategy Research argues while the BoC’s July hike marked a substantial turnaround in its communication, the subsequent CAD strength post the meeting looks stretched. “In our view, market pricing of the BoC has become too aggressive, with markets pricing in another two full 25bp hikes for the coming year. On balance, we therefore see relative rates as CAD negative, even though Canadian monetary policy is highly linked to the Fed,” Danske adds. In line with this view, Danske targets a recovery in USD/CAD towards 1.28 in 1-month and 1.30 in 3-months. 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. Yohay Elam Yohay Elam 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 a 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. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Chinese GDP beats with 6.9% – AUD/USD not taking Yohay Elam 6 years The Canadian dollar enjoyed the hawkish hike as well as strong data in Canada in weak figures in the US. Has it gone too far? Is the C$ too expensive? Here is their view, courtesy of eFXnews: CAD Has Gone Too Far; What's The Trade? - Nordea Nordea FX Strategy Research advises against 'extrapolating' BoC hawkish shift noticing that CAD has gone too far. "The Bank of Canada hiked rates fairly hawkishly in July which sent USD/CAD below 1.28. At minimum a period of consolidation is likely, given that the CAD is now substantially stronger than the BoC expected in… Regulated 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.