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5 Feb 2015
USD/CAD could target 1.30 in 3-m – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, believes spot could hit 1.30 in a 3-m horizon.
Key Quotes
“Far from convinced that energy prices have bottomed – the limp reaction to China’s RRR cut is one sign while strike action by US refinery workers is of course just temporary and won’t permanently alter the supply-demand imbalance”.
“Bottom line USD/CAD fair value should continue to grind higher and the case for another BoC March rate cut is building”.
The IVEY PMI at 45 still looks optimistic in the context of the powerful deflation in Canada’s energy patch that has barely started - it could easily have a 30 handle in the next couple months”.
“1.30 for USD/CAD still very much the 3 month target”.
Key Quotes
“Far from convinced that energy prices have bottomed – the limp reaction to China’s RRR cut is one sign while strike action by US refinery workers is of course just temporary and won’t permanently alter the supply-demand imbalance”.
“Bottom line USD/CAD fair value should continue to grind higher and the case for another BoC March rate cut is building”.
The IVEY PMI at 45 still looks optimistic in the context of the powerful deflation in Canada’s energy patch that has barely started - it could easily have a 30 handle in the next couple months”.
“1.30 for USD/CAD still very much the 3 month target”.