USDCAD could grind lower – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, expects the pair to edge lower in the next periods.

Key Quotes

“The oil price has rallied on the repricing of the path of Federal Reserve rate hikes this year and next year, a decline in the USD and OPEC-Russia talks on a production freeze”.

“All three factors have weighed on USD/CAD over the past month. We see a rebound in USD/CAD in the short run, as we expect oil prices to fall back temporarily”.

“Over 6-12M, we expect a recovery in oil prices, a stronger external economic situation and valuation to send USD/CAD lower”.