USD/CAD: Balance of risk still skewed to the topside – Danske Bank

Economists at Danske Bank still see the balance of risk skewed towards higher levels on the USD/CAD pair.

A move lower would likely require a stronger global growth backdrop

On the balance of risk, we still think it is skewed to the topside on both US economic outperformance and the USD-support stemming from global risk-off. 

A move lower in the USD/CAD pair would likely require a stronger global growth backdrop than what we pencil in.

Forecast: 1.36 (1M), 1.37 (3M), 1.38 (6M), 1.39 (12M)