13 Jan 2015
USD/CAD expected to end 2015 at 1.25 - Nomura
FXStreet (Bali) - Lower oil prices are negative for CAD, with USD/CAD expected to end 2015 at 1.25, notes Charles St-Arnaud, FX Strategist at Nomura.
Key Quotes
"Commodity currencies have continued to depreciate in recent months in the face of continued declines in commodity prices and the broad-based USD appreciation. The decline in commodity prices has already had a major negative impact on the terms of trade for commodity producers and will have a negative impact on their economies."
"we expect CAD to continue to depreciate in 2015 and believe that USD/CAD could reach 1.25 by the end of Q2 before stabilising around that level as commodity prices start to increase slightly again, as supply falls and global growth improves. USD/CAD should remain around those levels and end 2015 at 1.25."
Key Quotes
"Commodity currencies have continued to depreciate in recent months in the face of continued declines in commodity prices and the broad-based USD appreciation. The decline in commodity prices has already had a major negative impact on the terms of trade for commodity producers and will have a negative impact on their economies."
"we expect CAD to continue to depreciate in 2015 and believe that USD/CAD could reach 1.25 by the end of Q2 before stabilising around that level as commodity prices start to increase slightly again, as supply falls and global growth improves. USD/CAD should remain around those levels and end 2015 at 1.25."