USD/CAD: Towards 1.32 In Q1 – CIBC

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The Canadian economy enjoyed an upbeat job market in December but so did the American one. What’s next for USD/CAD?

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch Research discusses its expectations for next week’s BoC January policy meeting.

We expect the BoC to remain on hold on 9 January at 1.75%. We expect the MPR to cut GDP growth and inflation forecasts.

We expect a statement that leaves the door open for further hikes.

We expect two hikes in 2019 (March/April and October).

We expect a lower rate trajectory with 10y CAD at 2.3% by end-2019. USD/CAD to converge to 1.32 in 1Q,” BofAML projects. 

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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.

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