22 Jan 2014
Flash: USD/CAD is close to topping - UBS
FXstreet.com (Córdoba) - The UBS analyst team commented respecting recent CAD weakness, and noted the USD/CAD is close to topping.
Key quotes
"Last week, we changed our USD/CAD forecasts and outlined a short term wobbly, but longer term stronger view on the CAD".
"At their January meeting, the Bank of Canada kept its policy rate at 1%, as expected. Furthermore, it raised its growth forecast, but lowered the inflation forecast. Short term, the focus is fully on the low inflation".
"But if their expectation of a rebound in inflation and continued strong growth comes true, we believe that markets have probably overdone the CAD weakness".
Key quotes
"Last week, we changed our USD/CAD forecasts and outlined a short term wobbly, but longer term stronger view on the CAD".
"At their January meeting, the Bank of Canada kept its policy rate at 1%, as expected. Furthermore, it raised its growth forecast, but lowered the inflation forecast. Short term, the focus is fully on the low inflation".
"But if their expectation of a rebound in inflation and continued strong growth comes true, we believe that markets have probably overdone the CAD weakness".