According to Richard Franulovich, head of FX strategy at Westpac, USD/CAD’s new year decline to 1.30 has probably run its course and fresh catalysts for an continuation move lacking.
“BoC Dep Governor Lane characterised recent weakness as a “temporary soft patch”, but showed no rush to resume hikes (next BoC event risk not until 21 Feb, Gov Poloz speech).”
“The run-up in oil in the new year from $45 to $55 appears to be cresting and the discount on Western Select has narrowed about as much as can be expected after earlier mandated Alberta production cuts.”
“Canada’s growth picture looks far more secure than either Eurozone, the UK or Australia and the BoC will remain relatively more hawkish than other G10 central banks. CAD to be a 2019 outperformer.”
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.