14 Jul 2015
CAD under pressure, eyes 1.2835 vs. USD – Societe Generale
FXStreet (Edinburgh) - Further pressure on oil prices plus a potential rate cut by the BoC at tomorrow’s meeting could weigh on the Canadian dollar, according to Kit Juckes, Strategist at Societe Generale.
Key Quotes
“Crude oil prices are lower again this morning, as reports emerge of a deal in talks to curb Iran’s nuclear programme. Getting the deal signed off in Washington may still be difficult, but with Saudi Arabia showing no sign of cutting back on supply, oil bulls are feeling the pressure”.
“Oil-sensitive currencies will continue to be vulnerable in the short term with, in G10, CAD the most clearly vulnerable ahead of tomorrow’s BOC policy meeting”.
“The consensus looks for a 25bp rate cut to 0.5% at that meeting, though the respondent are almost evenly between unchanged and a cut”.
“The year’s high in USD/CAD at 1.2835 is psychologically critical and will be tested (at least) today”.
Key Quotes
“Crude oil prices are lower again this morning, as reports emerge of a deal in talks to curb Iran’s nuclear programme. Getting the deal signed off in Washington may still be difficult, but with Saudi Arabia showing no sign of cutting back on supply, oil bulls are feeling the pressure”.
“Oil-sensitive currencies will continue to be vulnerable in the short term with, in G10, CAD the most clearly vulnerable ahead of tomorrow’s BOC policy meeting”.
“The consensus looks for a 25bp rate cut to 0.5% at that meeting, though the respondent are almost evenly between unchanged and a cut”.
“The year’s high in USD/CAD at 1.2835 is psychologically critical and will be tested (at least) today”.