On Monday (Oct 10), / oscillated slightly higher, temporarily traded at 1.3739, up 0.07%.
Governor McCollum’s latest comments resisting expectations of a dovish turning point should reinforce the probability of a 50 basis point hike in October, but we are reluctant to extrapitate further as comments have a short lifespan in the current environment, especially as economic data are starting to cool.
Mr McCollum made some tough talk but failed to convince.
It sounds like they’re not willing to “pivot” yet, but they may not be far off.
We are a stronger believer in buying dips and currently expect to hit 1.40 this year, but that doesn’t mean it will be a top.
Usd/CAD renewed session highs around 1.3750 in early Asian trade on Monday.
The latest rise in the CAD pair may be related to a pullback in the price of oil, Canada’s main export item, and hawkish expectations from the US (Federal Reserve).
