What you need to know:
1
The October BoC interest rate decision features reasons for both holding policy steady as well as another 25bp rate cut.
2
The timing between the meeting on October 29 and the federal budget on November 4 may provide the BoC with a window to slip in one more rate cut.
3
Market pricing is leaning toward a cut, but it is not fully priced at this juncture.
4
We discuss the potential impact of a rate cut on USD/CAD, which has recently pierced the upper end of a multi-month trading range.
5
The recent move higher presents a hedging opportunity and we present some key technical levels to watch in this regard.
For the trading range:
USD/CAD
Buyers
1.3600/1.3700
Sellers
1.4000/1.4100
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