Key Points:
Expected Rate Cut:
Messaging Crucial for CAD:
Focus will shift to how the BoC signals the pace of future rate cuts.Risks include near-term CAD strength if the BoC hesitates to commit to continued cuts.Tariff Uncertainty Weighs on Outlook:
Tariff threats from the US create an overhang, influencing the BoC's cautious tone.Medium-Term USD/CAD View:
Goldman remains comfortable with below-consensus estimates for Canada’s neutral rate.Long USD/CAD is a preferred medium-term strategy, reflecting potential headwinds from tariffs.Conclusion:
Goldman Sachs sees potential for near-term CAD support if the BoC sounds hesitant about further cuts. However, their medium-term view remains firmly tilted toward USD/CAD upside, driven by tariff risks and a relatively dovish BoC outlook. Long USD/CAD remains a favored trade.
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This article was written by Adam Button at www.forexlive.com.Hence then, the article about goldman sachs what we expect from january boc and usd cad strategy was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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