19 Feb 2015
USD/CAD could hit 1.30 in 3-month view – Westpac
FXStreet (Edinburgh) - The weakness around the CAD, prospects of further rate cuts by the BoC and the USD strength could be the drivers pushing spot to 1.30, according to Richard Franulovich, Strategist at Westpac.
Key Quotes
“USD/CAD threatening to break key support, the level depending on the thickness of your pencil, at 1.2360 and then 1.2310”.
“A break may see a quick run down to 1.21- 1.22 but suspect that it will prove to be nothing more than a washout of stale positions”.
“The fundamental case for 1.30+ on a 3 month horizon remains solid given near-certain odds of a 25bp BoC rate cut on 4 March (currently OIS markets give a 66% probability) and the limited upside potential for energy prices amid record high US crude output”.
Key Quotes
“USD/CAD threatening to break key support, the level depending on the thickness of your pencil, at 1.2360 and then 1.2310”.
“A break may see a quick run down to 1.21- 1.22 but suspect that it will prove to be nothing more than a washout of stale positions”.
“The fundamental case for 1.30+ on a 3 month horizon remains solid given near-certain odds of a 25bp BoC rate cut on 4 March (currently OIS markets give a 66% probability) and the limited upside potential for energy prices amid record high US crude output”.