USD/CAD has some catching up to dp from a fundamental perspective – CitiBank

Matías Salord FXStreet

Analysts at Citibank point out the Canadian dollar has some catching up to do from a fundamental perspective that should continue to support the loonie over the next months. They forecast USD/CAD at 1.30 over a 0-3 month period and at 1.27 in a 6-12 months horizon.

Key Quotes:

“The loonie has benefitted from the general reflationary dynamics/risk on momentum we’ve seen across markets. We expect risk sentiment to continue to be an important driver, but also think CAD has some catching up to do from a fundamental perspective such as oil prices. WTI have found a bottom and continue to steadily rise. This may continue to support CAD over our forecast horizon as our forecast WTI at 51$/bbl in 12m.”

“USDCAD has traded through the key resistance at 1.3686 and would also complete a bullish outside week, suggesting the pair can retest the 55d MA at 1.3833 with support at 1.3487.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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