Bank of America: The Fed’s pause in interest rate hikes will drive a rebound in the Canadian dollar

Bank of America strategists Howard Du and Carlos Capistran said in a report that if the Federal Reserve announced to keep interest rates unchanged at next month’s meeting, the Canadian dollar (CAD) may rebound after its sharp fall in August. The Canadian dollar will rebound from the oversold level to 1.33 Canadian dollars against the US dollar in the short term, and its valuation should be restored in the long run.