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Brown Brothers Harriman analyst Elias Haddad anticipates the Canadian Dollar (CAD) will remain resilient despite potential market overestimation of aggressive Bank of Canada (BoC) rate hikes. Current market pricing assumes a steep tightening cycle, but Haddad suggests the BoC’s actual policy path may be more moderate. This divergence between market expectations and central bank actions could create opportunities for traders to capitalize on CAD volatility. The BoC’s upcoming policy decisions will be critical in validating or challenging these assumptions. Traders should monitor BoC statements and inflation data for clues about the central bank’s true trajectory. The CAD’s performance against majors like USD and EUR will also reflect broader risk sentiment in global markets.
