BoC: July rate hike is quite unlikely – Deutsche Bank

It is a strange world where the market moves from a housing crisis in Canada to a rate hike in a matter of days and analysts at Deutsche Bank suggest that a July rate hike is quite unlikely leaving USD/CAD to gap a big figure higher.

Key Quotes

“However an upward revision in growth forecasts would cap this move as it drives Canadas 2s to 10s a tad higher. As the path for the BoC clarifies, we believe USD/CAD is likely to average around 1.32 in the coming months while USD/CAD 3M ATM is likely to fade once again lower.”