Morning Commentary & Currency Insights – December 6, 2018

Even though the market had begun pricing out the January hike USD/CAD moved aggressively higher when the BoC struck a dovish tone with many now looking towards April as a “live” date.  Poloz speaks this morning at 8 35 a.m.  on “Economic Progress Report and financial stability” as CAD continues to weaken amidst a negative global macro back drop . Look for 1.3350-60 as a base as the market reaches towards 1.35 where domestic hedging interest should be actively participating/selling. Market is pricing the first full hike now in July (April previously).