The Bank of Canada is expected to announce a one last rate hike to 1% before pausing to gauge the impact of the prior tightening.
They are expected to take a dovish stance in the statement with focus on the US slowdown and the negative impact that will have on the Canadian economy.
We have already retraced 50% or recent losses. A really dovish statement and/or a decision not to hike could put the 1.0670 area back in focus in days ahead…
Should they unexpectedly sound a more hawkish note, 1.0100/50 would be the downside target once levels below 1.0350 recent lows are breached. We trade now at 1.0488.
