A bit of optimism

Wells Fargo is out with a note on the Canadian dollar and has removed its call for a December Bank of Canada rate cut. The change came after Poloz's latest speech where he said he was comfortable with rates where they are.

Currency strategist Brendan McKenna forecasts USD/CAD falling to 1.3200 at year end, 1.28 by the end of 2020 and 1.27 by Q1 2021.

That's a long wait for less than 500 pips.

McKenna says the ratification of the USMCA deal could also unlock some CAD-friendly impulses.