USD/CAD: Loonie should start finding better support - CitiBank
In their weekly strategy report, analysts at Citibank forecast the USD/CAD will trade around 1.33 in a 0-3M period and around 1.31 in 6-12M. They see the Loonie gaining support in the short-term as markets priced in an unlikely rate cut from the Bank of Canada.
Key Quotes:
“Remain moderately bullish. BoC Governor Poloz heavily emphasizes downside risks from trade while remaining quite upbeat on the economy, saying (1) the slowdown is likely to prove temporary; (2) the future outlook remains positive; and (3) rates till more likely to go up than down if forecasts are right. While now not the base case, we may not rule out the potential for future rate hikes.”
“USDCAD has broken through the 1.3270/90-1.3400/20 range to the topside. But with Canadian short rates pricing in rate cuts from the BoC that is highly unlikely, CAD should start to find better support at the current levels.”
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.
