CAD: Rate hike likely from BoC in October - BBH

Strong Canadian economic data underpins expectations that the Bank of Canada will hike interest rates again in October, according to analysts at BBH.  

Key Quotes

“The market is not nearly as confident that any other major central bank will lift rates this year, including the Federal Reserve.  The US dollar corrected higher form CAD1.24 at the end of July to nearly CAD1.28 in the middle of August. In recent days, the US dollar fell through the 61.8% retracement this month's bounce (~CAD1.2550).  It looks set to retest CAD1.24.  Our next objective is near CAD1.2160.   A move above CAD1.26 would negative this bearish call.”