11 Aug 2015
USD/CAD could see 1.35 by end 2016 – BAML
FXStreet (Edinburgh) - According to analysts at BAML, the Canadian dollar could depreciate towards the 1.35 area by end 2016.
Key Quotes
“Following the change to our BoC call where our Economist now expects a further cut in January 2016, we raised our USD/CAD forecast to 1.32 and 1.35 for year-end 2015 and 2016 (from 1.27 and 1.30)”.
“The Canadian economy has yet to respond to the significant weakening of the C$ which will keep the BoC with a dovish bias”.
“Set against Fed tightening this year policy divergence will move strongly in the USD’s favor”.
“Meanwhile, low oil prices will continue to challenge Canada’s high cost production structure, crimping capex and jobs”.
Key Quotes
“Following the change to our BoC call where our Economist now expects a further cut in January 2016, we raised our USD/CAD forecast to 1.32 and 1.35 for year-end 2015 and 2016 (from 1.27 and 1.30)”.
“The Canadian economy has yet to respond to the significant weakening of the C$ which will keep the BoC with a dovish bias”.
“Set against Fed tightening this year policy divergence will move strongly in the USD’s favor”.
“Meanwhile, low oil prices will continue to challenge Canada’s high cost production structure, crimping capex and jobs”.