BoC to hike rates next week? - BBH

FXStreet Team FXStreet

Canada's surveys (senior loan officer and business outlook) reported yesterday reinforce speculation that the Bank of Canada will hike rates next week, suggests the research team at BBH.

Key Quotes

“The surveys follow the stellar jobs report and are the last important data point ahead of next week's meeting. The OIS suggests that odds of a hike have essentially doubled since the end of last year (from 45% to nearly 88%). The US dollar was sold to CAD1.2355 before the weekend from near CAD1.26 at the end of last year. It consolidated yesterday and is inside yesterday's range today. The US dollar may encounter resistance near CAD1.2485, around where it was trading before the strong Canadian employment data.”

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FXStreet Team

FXStreet

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