BoC: CAD may not receive much directional bias from next week’s meeting – TDS
|Next week, the Bank of Canada will have its monetary policy meeting. Analysts at TD Securities expect a 25 basis points rate hike in line with market consensus. They point out the Canadian Dollar (CAD) may not receive much direction bias from the meeting.
Key quotes:
“We look for the BoC to hike by 25bp in January, and we expect this will be the last hike this cycle (though the forward-looking component will not preclude future hikes).”
“While this is expected to be the last hike, the CAD may not receive much directional bias from this meeting as the curve may continue to be biased about looking at the other side of this interest rate cycle. That said, the CAD may be more sensitive to any dovish elements should the BOC emphasize elements from the BOS. We see a differentiated dynamic playing out on the crosses given risk correlations.”
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. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.