USD/CAD: Do expect to see a test of 1.36 - Rabobank

Christian Lawrence, Senior Market Strategist at Rabobank, notes that the USD/CAD has finally broken out of the 1.30-1.32 and entered 1.34-1.36 but do expect to see a test of 1.36 but the new range is likely to dominate trading in the upcoming months.

Key Quotes

“Oil prices are key and although we see limited downside from here, support for CAD from the black stuff is likely to be somewhat muted.”

“Domestic data has gotten off to a reasonable start this year but we do not expect the BoC to adopt a hawkish stance.”

“Trump policies still pose a risk for CAD both short term and longer term.”