USD/CAD seen grinding lower – Westpac

Strategist at Westpac Richard Franulovich believes the pair is heading lower in the short term.

Key Quotes

“May CPI the key data point of note for the week ahead. The data should not fuss, with the core rate likely to rise 0.2% in the month. BoC Gov. Poloz speaks (Wed)”.

“With energy prices still very well supported and some residual July 27 Fed rate hike risk still to be priced out (8bp), USD/CAD can continue to trade lower near term”.

“As it is, USD/CAD has not kept pace with the rise in oil prices which more fairly value USD/CAD nearer 1.24/1.25”.