USD/CAD to drop considerably towards 1.20 in the next weeks – Standard Chartered

FXStreet Team FXStreet

Economists at Standard Chartered expect the USD/CAD downtrend to continue towards 1.20 over the coming weeks.

Key quotes

“Further USD strength could be seen if bond yields edge higher, but we continue to suggest averaging into short USD positions.”

“Provided we have no further pandemic setback, the counter-cyclical USD should fall and currencies such as the AUD, NZD and CAD should continue to appreciate.”

“With the expected US recovery package and anticipated infrastructure bill thereafter, the US-centric Canadian economy should outperform as it concurrently ramps up its domestic vaccination programme. This should be a catalyst for the USD/CAD downtrend to continue towards 1.2000 in the coming weeks, while technical resistance around 1.2880 likely caps any short-term bounce.”

Author

FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.