The market is looking for a hawkish Bank of Canada but we expect them to now hold rates which is bearish for the CAD.
There is more interest rate sensitivity in the Canadian economy than the U.S. economy and while the Bank of Canada has probably ended its interest rate hike cycle the Fed is not done and the USD will hold an advantage in terms of yield going forward.
We expect the CAD to fall with other commodity currencies as the global economy slows up and see the Fed holding rates higher for longer - we have a combination of yield and safety in favor of the USD. #OPINIONLEADER#
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