BoC: No fireworks next week - Westpac
According to Richard Franulovich, Research Analyst at Westpac, there’s next to no chance of a BoC hike next week.
Key Quotes
“For one officials have gone out of their way to stress a renewed focus on “financial conditions”, which have tightened considerably in recent months and some key data points such as the BoC’s business survey have cooled.”
“Beyond that +50bp in BoC rate hikes by Sep-2018 is priced in, entirely reasonable given PM Trudeau’s 2016 fiscal stimulus is still flowing through the economy, US growth prospects are firming amid very easy financial conditions while oil prices are holding near multi-month highs.”
“USD/CAD should wash about in a 1.231.26 range into year’s end before potentially resuming its downtrend as US tax cut fever hits political snags and the BoC resumes rate hikes.”
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.
