Canadian Dollar: BoC hawkish tilt and key levels – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret report USD/CAD is steady near 1.39 as markets await the Federal Reserve (Fed) and the Bank of Canada’s (BoC) summary of deliberations. They note the BoC is likely to sound more hawkish after firmer inflation data and still-accommodative policy.
Scotiabank's analysts forecast a hawkish stance from the Bank of Canada (BoC) in its upcoming policy decision on September 2nd. The analysts believe the BoC will sound firmer on inflation, despite accommodating policy. The Canadian Dollar (CAD) is currently near 1.39 against the US Dollar (USD), with resistance expected around 1.3950.
A break above this level could push the CAD towards 1.40-1.4150. The BoC's focus on inflation risks, coupled with trade friction-induced growth uncertainty, may prompt a late-year start to normalization, according to the analysts.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
