The CAD lost further ground after the Bank of Canada kept interest rates on hold as expected at 4.50%. Economists at Société Générale expect the USD/CAD pair to grind higher toward 1.3860, then 1.3980/1.4040
CAD to languish
“The Loonie looks poised to head towards 1.3860 and the peak of last year at 1.3980/1.4040.”
“Disappointing US employment or a second successive month of above forecast Canadian job gains and hawkish BoC repricing could elicit CAD dip buying at oversold levels relative to 2y2y forwards.”
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