USD/CAD: The balance of risk is skewed to the topside from here – Danske Bank
|Economists at Danske Bank share their USD/CAD forecast.
Relative growth outlook between the US and Canada favours a higher cross
We still think the balance of risk for USD/CAD is skewed to the topside from here. We pencil in a return of broad-based USD strength and we believe the relative growth outlook between the US and Canada favours a higher cross.
Also, the tail-risk related to private debt in Canada remains a tail-risk which should limit the potential for relative rates to send USD/CAD much lower from here.
Forecast: 1.35 (1M), 1.36 (3M), 1.37 (6M), 1.37 (12M)
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