There is something interesting going on in Canada. And it may become a serious argument in favor of future CAD appreciation.
Monday’s Business Outlook Survey confirmed the robust business prospects even before the NAFTA deal was finalized. It means that we will see even more optimistic outlook within the report next month.
What does it mean? It means that the chances of Bank of Canada hiking rates next month are high. And Friday’s scheduled release of Canadian CPI and the retail sales may confirm the positive picture triggering the interest in Canadian Dollar.
If you add the bullish oil trend as a strong supporter of CAD appreciation, you may realize that USD/CAD has a good chance of showing a sharp sell-off in the nearest future with initial target at 1.2870 and 1.28 to follow.