Topic: Bank of Canada rate hike 24th October 2018
Bank of Canada is expected to hike rates for the 3rd time this year. The hike is almost full priced in and the current expectations are for a dovish hike.
So unless we get a surprise and a hawkish message delivered, loonie should not strengthen too much, besides the initial knee jerk.
However, I believe there is room for USD/CAD to move down until the announcement tomorrow. The next obvious target is 1.3050, should that not hold we might see USD/CAD closing in on 1.3000 before the meeting.
What are your thoughts?