USD/CAD: Limited upside - ING

Sandeep Kanihama FXStreet Contributor

Francesco Pesole, FX strategist at ING, suggests that a possible re-escalation in trade tensions between the US and China indeed has the potential to dampen appetite for risk-sensitive currencies such as CAD.

Key Quotes

“We expect the mix of factors to provide some support to the currency, keeping any upside in USD/CAD limited.”

“We forecast that the recent downward pressure on the currency pair will resume in 4Q19, when we expect trade tensions to abate, crude prices to peak and US-Canada policy divergence to linger.”

“Accordingly, we do not exclude another upward move in the CAD positioning indicator towards the end of the year, when USD/CAD should start to test the sub-1.300 area.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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