17 Jun 2015
USD/CAD now seen at 1.26 in 3-month – Danske Bank
FXStreet (Edinburgh) - Christin Tuxen, Senior Analyst at Danske Bank, believes spot could be headed towards the 1.2600 level in a 3-month horizon.
Key Quotes
“While the market retains a slight easing bias for BoC we believe Poloz and co. are done cutting rates for now, provided that the oil price remains above the USD60/bbl for Brent and US activity recovers”.
“Near term our outlook for a first Fed hike in September leaves room for upside to USD rates and greenback strength in turn”.
“This suggests that USD/CAD should see another leg higher in coming months. On a 12M horizon we nevertheless project that USD/CAD will stabilise again driven by an oil recovery and the market retreating on the need for further BoC easing”.
“We have upped our near-term USD/CAD profile slightly and now see 1.26 in 3M (previously 1.24). However, we maintain a peak at 1.27 in 6M”.
Key Quotes
“While the market retains a slight easing bias for BoC we believe Poloz and co. are done cutting rates for now, provided that the oil price remains above the USD60/bbl for Brent and US activity recovers”.
“Near term our outlook for a first Fed hike in September leaves room for upside to USD rates and greenback strength in turn”.
“This suggests that USD/CAD should see another leg higher in coming months. On a 12M horizon we nevertheless project that USD/CAD will stabilise again driven by an oil recovery and the market retreating on the need for further BoC easing”.
“We have upped our near-term USD/CAD profile slightly and now see 1.26 in 3M (previously 1.24). However, we maintain a peak at 1.27 in 6M”.