BoC: An explicit signal of a pause will weaken CAD – MUFG BOC USDCAD Canada Banks
“While we believe there is a good chance today’s 25 bps hike could be the last, we are less sure that the BoC will be willing to give explicit guidance on that today. There should be enough ‘between the lines’ for the markets to conclude a pause is more likely but we perhaps should not expect that view to be expressed explicitly.” decision a week away, we doubt we see a big reaction to a communication that does not include an explicit pause reference.
“We continue to expect CAD to underperform more generally as the US Dollar weakens. The Canadian economy is more vulnerable to a period of sustained higher rates and that is likely to undermine appetite for CAD.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
USD/CAD hovers around 1.3375 ahead of the BoC’s decisionThe USD/CAD erases some of its earlier losses, climbs toward the 1.3370 region after briefly touching its daily low of 1.3342, ahead of a crucial week
Leer más »
USD/CAD declines towards weekly low at around 1.3340 ahead of BoC’s interest rate policyThe USD/CAD pair has dropped to near 1.3367 gradually in early Asia after failing to shift its auction above the round-level resistance of 1.3400. The
Leer más »
USD/CAD consolidates ahead of BoC and key dataUSD/CAD is flat on the day after travelling between a low of 1.3346 and a high of 1.3413 so far while US stocks have been volatile making for choppy t
Leer más »
USD/CAD Price Analysis: Grinds below 1.3400 on BoC dayUSD/CAD portrays the typical pre-event anxiety as it makes rounds to 1.3370-60 during early Wednesday in Asia. In doing so, the Loonie make seesaws ne
Leer más »
USD/CAD struggles to extend recovery above 1.3380 ahead of BoC policyThe USD/CAD pair is facing barricades in paddling above the immediate resistance of 1.3380 in the Asian session. The Loonie asset is expected to displ
Leer más »
BoC: Three scenarios and its implications for USD/CAD – TDSEconomists at TD Securities discuss the Bank of Canada (BoC) interest rate decision and its implications for the USD/CAD pair. Hawkish (10%) 50 bps Hi
Leer más »