BoC: Commitment to further policy normalisation continue to percolate - Westpac

Sandeep Kanihama FXStreet Contributor

According to Richard Franulovich, head of FX strategy at Westpac, doubts about the BoC’s commitment to further policy normalisation continue to percolate but only a very bare +12bp in BoC hikes are now priced over their next six meetings to September 2019.

Key Quotes

“Its a material decline from two months ago when rates markets discounted +70bp in BoC hikes over the same period.”

“USD/CAD has declined sharply in the new year pricing in some of the aforementioned positives but suspect it has further to run in H1, a test of key lows just below 1.28 (Oct 2018) on the cards. Recommended selling EUR/CAD earlier this week.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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