The Bank of Canada (Boc) rate decision-June 3, marks the first day of work, and the first rate decision for the new Governor, Tiff Macklem, as he takes charge of Governor Poloz. The economists of the Rabobank believe that the policy interest rate at 0.25% for a time, have revised the decline of the USD/CAD 3-month forecast to 1.42. Goldman Sachs, expect the USD/CAD pair is trading at 1.40 in 3 months.
The key is what others have said or Rabobank
“We expect the Bank of Canada to leave its key rate unchanged at 0.25%, on Wednesday, 3 June. It is fully expected by the analysts (Bloomberg survey), and trading (USD OIS). We expect the policy rate to 0.25% at least until 2020 and 2021.”
“The break below 1.3830 USD/CAD has broken the recent range, but we are reluctant to call the pair trading much lower from here, in spite of the equity rally, a research-to-have-feet-in-the-long-term.”
“We now expect the USD/CAD pair to trade at 1.38 1-month to 1.42 over a period of 3-month horizons, down from 1.44 and 1.46, respectively.”