September's cut is priced in. Your hedge ratio shouldn't be.
The market has decided what the Bank will do this month. It has not decided what that means for the currency, and neither should your policy.
Sample note. Connect the Notion database to replace it with the desk’s own writing.
The market has decided what the Bank of Canada will do this month, and the front end of the curve reflects it. What it has not decided is what that means for the currency, which is why USD/CAD has moved less than the headlines suggest it should.
A hedging policy is not a forecast. If your ratios were set for a calm year and this is not one, the answer is a conversation with the board, not a trade.
We are taking calls on this all week.
General market commentary from the desk, not investment advice and not an offer to trade. Rates shown are the Bank of Canada daily average for the date and are indicative only; ask the desk for a dealable quote.
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