3 Feb 2015
USD/CAD might see 1.30 levels by 2015-end – BAML
FXStreet (Barcelona) - Ian Gordon of BofA-Merrill Lynch, forecasts USD/CAD to end 2015 at 1.30 and 2016 at 1.23 levels.
Key Quotes
“Our Energy team’s shift to a much lower oil profile upended our initial premise that CAD would be supported in H2 2015 by stable oil prices, Canada’s close proximity to the U.S. growth story, and approach of the first BoC hike in early 2016.”
“We now expect USD-CAD to end 2015 and 2016 at 1.30 and 1.23, respectively (from 1.26 and 1.20).”
“A period of lower for longer oil prices, and a central bank willing to push rates lower should oil prices declines continue supports our higher USD-CAD call.”
“Lastly, strong US data leaves room for the Fed to hike by September, pushing rate differentials further in the USD’s favor.”
Key Quotes
“Our Energy team’s shift to a much lower oil profile upended our initial premise that CAD would be supported in H2 2015 by stable oil prices, Canada’s close proximity to the U.S. growth story, and approach of the first BoC hike in early 2016.”
“We now expect USD-CAD to end 2015 and 2016 at 1.30 and 1.23, respectively (from 1.26 and 1.20).”
“A period of lower for longer oil prices, and a central bank willing to push rates lower should oil prices declines continue supports our higher USD-CAD call.”
“Lastly, strong US data leaves room for the Fed to hike by September, pushing rate differentials further in the USD’s favor.”