USD/CAD eyes 1.3200 in the very near term – Danske Bank

Senior Analyst at Danske Bank Kristoffer Lomholt sees the pair slipping back to the 1.3200 area within a month’s time.

Key Quotes

“Over the past month, USD/CAD has been hit by both a repricing of Fed monetary policy and the oil price falling. Meanwhile, the domestic outlook has improved further, which has left rates markets still pricing in close to a full rate hike over the coming year. However, we are a little more cautious on the rate hike outlook and instead emphasise valuation and recovering oil industries as a gravitating force on the cross”.

“We forecast USD/CAD at 1.32 in 1M (unchanged), 1.31 in 3M (from 1.32), 1.30 in 6M (unchanged) and 1.28 in 12M (unchanged)”.

 

Sell 67%
Buy 33%
100.0%67.0%0657075808590951000
Avg Sell Price 1.3410
Avg Buy Price 1.3265
Liquidity Distribution
1.31501.33601.35701.31501.33601.3570SellBuy