CIBC see the CAD lower over the coming 12 months, and on central bank monetary policy:
- expects the BoC to wait for the Fed to hike
- and to then tighten at a slower pace than the Fed
- If the BoC tightens "faster than the Fed then that puts untoward (upward) pressure on the loonie and we think the Bank of Canada is going to be keen to avoid that"
The comments from CIBC come via this report on a poll on the CAD, which finds the opposite to the CIBC expectations:
- Canada's dollar will strengthen over the coming year
- support from higher oil prices, reduced stimulus from the Bank of Canada
- gains could stop short of the currency's recent six-year high
Check the link for more.
