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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