What you need to know:
1
Recent Fed communication and softer economic data have caused our US rate strategists to revise their Fed call.
2
However, the revisions are focused more on timing issues and not the total magnitude of expected rate hikes.
3
The October Bank of Canada meeting is a close call, with elevated energy prices yet to create inflation pressure in the broader economy.
4
Our Canadian rate strategists have outlined a risk-based versus outcome-based approach that the BoC may use, with each resulting in a different potential outcome.
5
We conclude by revisiting our USD/CAD forecast profile in light of our revised interest rate forecasts.
For the trading range:
USD/CAD
Buyers
1.3800/1.3900
Sellers
1.4200/1.4300
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