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22 Oct 2015
USD/CAD upside intact in the long-term – Westpac
FXStreet (Edinburgh) - According to Richard Franulovich, Strategist at Westpac, the constructive perspective around the pair still remains unchanged.
Key Quotes
“USD/CAD’s downmove appears to have run its course sooner than we expected, the renewed slump in crude oil prices and BoC downgrades to their 2016 and 2017 growth projections the major catalysts”.
“By the same token it’s not clear to us that a run up to 1.34 and beyond is necessarily on the cards, especially as Dec Fed lift-off odds should remain subdued (30-35%) and given reasonably decent chances of further monetary accommodation from either the ECB, the BoJ and/or the PBoC in coming weeks”.
“Longer term uptrend in USD/CAD still very much intact, though it’s unlikely to reassert itself more forcefully until Q1 2016”.
Key Quotes
“USD/CAD’s downmove appears to have run its course sooner than we expected, the renewed slump in crude oil prices and BoC downgrades to their 2016 and 2017 growth projections the major catalysts”.
“By the same token it’s not clear to us that a run up to 1.34 and beyond is necessarily on the cards, especially as Dec Fed lift-off odds should remain subdued (30-35%) and given reasonably decent chances of further monetary accommodation from either the ECB, the BoJ and/or the PBoC in coming weeks”.
“Longer term uptrend in USD/CAD still very much intact, though it’s unlikely to reassert itself more forcefully until Q1 2016”.