Maybe the Bank of Canada Wasn't So Dovish After All

The Canadian dollar is the worst-performing G-10 currency on Wednesday, down more than 1 percent against the greenback. But this may overstate the extent to which markets have given up on further policy normalization by Bank of Canada Governor Stephen Poloz.

Canadian Bankers’ Acceptances futures show that the amount of tightening expected in the January and March rate decisions went up, even as investors pared back expectations for December. The odds of two rate increases for all of 2018 also rose in the wake of the decision, suggesting rate hikes have only been delayed -- not derailed.

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