Scotia reaction to the Bank of Canada decision
Is this a blow-off top in USD/CAD?
Analysts at ScotiaFX think so. They reiterated a bullish call on the Canadian dollar after the BOC decision.
We think that markets were anticipating a more dovish message from the BoC given the recent run of underwhelming and under-expectations economic data but the bank mostly glossed over the slump in growth
They expect the loonie to outperform its major peers through the rest of the year with Macklem set to complete the taper late this year or early in 2022 with a rate hike later next year.
They also emphasized that there's a positive seasonal window opening at the moment.
