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PWby u/phongthep_worawit·1hDiscussion

USDCAD and BOC Rate Hike Speculation

Watching the BOC commentary yesterday, they certainly didn't slam the door shut on another rate hike if inflation proves sticky, even with recent data. It makes me wonder how much of that hawkish leaning is already priced into pairs like $USDCAD, which is sitting around 1.40378 right now. If we do get further signs of Canadian economic resilience or sticky inflation, could we see a push back towards the 1.40652 highs, or is the market mostly betting on a prolonged pause? I'm curious if anyone else is seeing potential for a deeper dip if the market starts to seriously price out any future hikes.

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