In today’s session, the highlight will be the latest policy decision from the Bank of Canada. The economists at Barclays Research expect CAD impact to be slightly positive.
CAD remains first and foremost a risk trade
“We expect some CAD upside on a 25 basis point hike from the Bank of Canada that is not fully priced in. However, CAD gains from undervalued BoC rallies in the past have been modest and short-livedand sustained gains depend on the background of risk.”
“Beyond the tactical considerations surrounding this week’s meeting, CAD remains first and foremost a risky trade. Consequently, sustained gains against the dollar, in particular, will likely require the S&P 500 index to catch up with equity markets abroad.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
