Won’t Chase USD/CAD lower Into BoC – Nomura

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The Canadian dollar received positive economic indicators and rising oil prices, yet NAFTA worries are holding it back. And now, the loonie faces the rate decision by the BOC. While Poloz and co. are expected to raise rates the team at Nomura is skeptical.

Here is their view, courtesy of eFXnews:

Nomura Research discusses USD/CAD outlook into the BoC January policy meeting on Wednesday.

We expect the BoC to raise interest rates at this Wednesday’s meeting. However, we continue to think that the risks are more finely balanced than the market prices, and given already elevated expectations would not chase the move lower in USD/CAD

Despite strong domestic data, uncertainty around the inflation generation process and the heightened sensitivity of the economy to interest rate increases continue to warrant a pragmatic approach from the BoC in our view. We remain short CAD/NOK,” Noumra 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.

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