USD/CAD to plummet below 1.20 as constructive loonie profile persists – ING
|Despite the recent correction, the Canadian dollar should still do well. According to economists at ING, the CAD could retest its cycle highs against the dollar later this year.
USD/CAD to nosedive below 1.20 before year-end
“The loonie has been caught in the crossfire of unstable risk appetite and the impasse at the OPEC+, but is still counting on a solid set of fundamentals (as emerged from the latest jobs data).”
“The worst of the data-flow affected by the spring flare-up in COVID-19 cases in Canada is likely past us, and the fast vaccination roll-out is offering hope for a summer of robust data.”
“The Bank of Canada will taper asset purchases again in 3Q, keeping the policy message firmly on the hawkish side. The main risks for the loonie are related to a slowdown in the US recovery or a sharp drop in oil prices. Neither of these are our base case, and we still expect sub-1.20 levels in USD/CAD in 4Q21.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.