Morgan Stanley (this via eFX)
- "We expect the Bank of Canada to hike rates this month, surprising the market and boosting CAD. The December employment report was very strong (headline employment, full-time vs. part-time jobs, and the regional breakdown indicated a robust labor market), which should contribute to a repricing in near-term rates and support CAD,"
- "The Fed's ongoing shift towards a tighter policy stance should spill over to Canadian real yields - the 10y inflation-linked Canadian is at a post-COVID high. Higher real yields in Canada, in turn, should support CAD as oil prices continue to grind higher to our 3Q 22 $90bbl Brent oil forecast,"
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