USD/CAD to move lower over coming months - Danske Bank


Analysts from Danske Bank expect the Bank of Canada to keep their interest rate unchanged over the next 12 months. They forecast USD/CAD at 1.32 in a 1-month horizon. 

Key Quotes: 

“Over the past month, broad-based USD weakness has countered the positive spot impact of lower oil prices. At the latest monetary policy meeting, the Bank of Canada kept rates unchanged while signalling that the central bank expects to stay on hold. Meanwhile, as the US is by far the most important trading partner for Canada, Fed rate cuts on balance increase the probability of the Bank of Canada (BoC) easing; markets price roughly one cut in 12M.”

“For now, we stick to the call of unchanged rates over the next 12M, as the latest data releases out of Canada have kept up well while oil prices would benefit from a further weakening of the USD.”

“We lower the front-end of our profile to 1.32 in 1M (from 1.33) but leave our 3M, 6M and 12M forecasts unchanged at 1.31, 1.28 and 1.26, respectively.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggles below 1.1100 amid stimulus concerns

EUR/USD remains on the back foot below 1.1100 as investors fear that Germany's potential stimulus package will be insufficient. Tension is mounting toward Powell's critical speech on Friday.

EUR/USD News

GBP/USD struggles with 1.2100 amid growing Brexit uncertainty

GBP/USD is trading close to 1.2100, down. UK PM Johnson's request to abandon the Irish backstop in the Brexit accord was rebuffed by the EU ahead of top-level meetings.

GBP/USD News

USD/JPY retraces from 3-day top as risk-on takes a breather

The Asian traders look for further details to extend the USD/JPY pair’s previous run-up as a pullback emerges on the chart around 106.60 heading into Tuesday’s European session.

USD/JPY News

Gold: Bearish outside bar reversal favors drop to $1,480

Gold closed well below $1,504 on Monday, validating the bearish outside bar candlestick pattern created on Friday. A bearish outside bar candle occurs when the price action for a specific day falls outside the high and low of the preceding day.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •