The Canadian dollar has turned around after the huge gains, reacting negatively to bad news and ignoring good news. What’s next? Here is their view, courtesy of eFXnews: CIBC FX Strategy Research notes that the GDP growth in the US and Canada is always highly correlated so when they diverge, FX moves often help to bring growth rates closer together again. “Based on policymakers’ own sensitivities to the moves in FX recently, alongside the turn to hiking by the BoC, are already large enough to see growth rates converge again. Our forecasts for 2018 differ from those achieved here because we see the Canadian economy being more sensitive to rate hikes than in the past, but also don’t expect the US economy to get a significant boost from a weaker currency,” CIBC adds. “Either way though, this analysis suggests another reason for the BoC to be cautious in letting the C$ appreciate further from here. Indeed, we actually see the C$ giving back some of its recent strength, with USD/CAD rising back to 1.30 by year-end,” CIBC argues. 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 Daily Look share Read Next Gold and S&P going in opposite directions – Elliott Wave Gregor Horvat 6 years The Canadian dollar has turned around after the huge gains, reacting negatively to bad news and ignoring good news. What's next? Here is their view, courtesy of eFXnews: CIBC FX Strategy Research notes that the GDP growth in the US and Canada is always highly correlated so when they diverge, FX moves often help to bring growth rates closer together again. "Based on policymakers' own sensitivities to the moves in FX recently, alongside the turn to hiking by the BoC, are already large enough to see growth rates converge again. Our forecasts for 2018 differ from those achieved here because… 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.