The Canadian dollar has seen a lot of turbulence of late on various events, with the Bank of Canada’s statement being the biggest mover. What’s next for the C$? Credit Agricole discusses positioning: The forex market latched on to two important points from the BoC release: guidance and forecasts. First, on guidance, it dropped the term “neutral” in regards to the next change in its policy rate. This compares to the September statement where it indicated that ” the Bank remains neutral with respect to the next change to the policy rate.” The BoC remains firmly on hold but this language change and the BoC’s renewed focus on household imbalances help push front rates higher. Second, the forecast updates also helped marginally boost CAD. Indeed, on inflation, it increased its core inflation forecasts in the monetary policy report (MPR). Specifically, it marked up its Q1 and Q2 2015 views to 1.9% YoY and 1.8% YoY from around 1.6% YoY in the prior MPR. Against a backdrop of disinflation and stagnation concerns across most of the globe, an uptick in the inflation outlook support FX. Indeed, while the BoC has been able to downplay the upbeat CPI figures over the recent months, it finally accepted that some of the price pressures might be “sticky.” We still expect the BoC to lag the Fed in the rate cycle due to the divergent business cycles. This is key our to our medium-term USD/CAD outlook However, we like CAD on the crosses and think the US economic performance should help support the medium-term Canada macro outlook, supportive of CAD in the G10. 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 US jobless claims rises to 283K – lowest moving average Yohay Elam 7 years The Canadian dollar has seen a lot of turbulence of late on various events, with the Bank of Canada's statement being the biggest mover. What's next for the C$? Credit Agricole discusses positioning: The forex market latched on to two important points from the BoC release: guidance and forecasts. First, on guidance, it dropped the term "neutral" in regards to the next change in its policy rate. This compares to the September statement where it indicated that " the Bank remains neutral with respect to the next change to the policy rate." The BoC remains firmly on hold but this… 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.