On Friday (Oct 28), / fell back from high, temporarily traded at 1.3539, down 0.23%.
The Canadian dollar fell in response to a dovish 50 basis point hike, and in our view, the outlook for the Canadian dollar has shifted significantly to the downside.
The Bank of Canada is expected to raise rates by 25 basis points each in December and January to a terminal rate of 4.25%, compared with our previous forecast for the Bank of Canada to hit a terminal rate of 4.25% in December;
We have been bearish on NZD since June and we remain committed to that view, especially now that the Bank of Canada has sent the worst signals.
Usd/CAD slipped to 1.3550 despite weak oil prices and US PCE inflation.
Accepted quotes in Asia on Friday, refreshing the day’s low near 1.3550, reversing the previous day’s month-end rally.
