- Analytics
- News and Tools
- Market News
- USD/CAD: Loonie outperformance to continue after a BoC hawkish hold – TDS
USD/CAD: Loonie outperformance to continue after a BoC hawkish hold – TDS
The Bank of Canada (BoC) held the overnight rate at 0.25% in January, in line with consensus. The CAD weakened following the decision. That said, a hawkish hold alongside what economists at TD Securities think will be a bit of a relief risk rally still leaves the loonie better placed for now.
Rate hikes will be coming soon
“The Bank of Canada held the overnight rate at 0.25% in January, in line with consensus, although markets were pricing a much higher probability of liftoff. The Bank also provided strong signal for a March hike by noting that economic slack has been absorbed.”
“We look for the Bank to hike by 25 bps at its next meeting.”
“We think it is difficult to fade the CAD with a central bank set to hike. That said, with how the curve is priced, we are cognisant that any additional gains will eventually be grounds for lightening up on longs.”
“Near-term, we are biased to a relief rally following a terrible start in equities this year. That should benefit the CAD.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
