USD/CAD: Likely To Retest Sep Lows At 1.2062 If BoC Delivers A Hike Next Week – BTMU

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The Canadian dollar enjoyed the excellent jobs report and also liked the bullish BOC business survey. Oil prices have reached the highest levels since December 2014. Yet against the strength of the US dollar, perhaps something is missing. Will a BOC rate hike make an even bigger splash?

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research discusses USD/CAD outlook and think the pair is likely heading lower into BoC’s January meeting next week, where BTMU expects the central bank to deliver a rate hike.

“It is understandable that market participants have brought forward expectations for the next BoC rate hike to later this month on the 17th January. It supports our call for a January rate hike as well.

The increased likelihood of an earlier BoC rate hike and higher price of oil should both encourage a stronger loonie in the near-term If the BoC delivers a rate hike this month as well, it could encourage USD/CAD to retest the low from September at 1.2062,” BTMU argues.

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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 the 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.