7 Jul 2015
USD/CAD to test 1.3000 in 1-month – Westpac
FXStreet (Edinburgh) - Strategists at Westpac see the pair climbing to the key 1.3000 level in a month’s horizon.
Key Quotes
“Our long held view that the Q2 bounce back will underwhelm is finally getting some traction with April monthly GDP contracting, for the fourth month in a row and the fifth month in the last six”.
“If monthly GDP does not post a strong bounce in May/Jun Canada may well have contracted for two consecutive quarters”.
“Markets pricing in a 55% chance of a BoC easing by September and almost 90% by year’s end”.
“These odds are by no means extreme and if anything have room to price in more near term easing risk”.
“USD/CAD should take out 2015 highs at 1.2830 on this run up and test 1.30 on a one month horizon”.
Key Quotes
“Our long held view that the Q2 bounce back will underwhelm is finally getting some traction with April monthly GDP contracting, for the fourth month in a row and the fifth month in the last six”.
“If monthly GDP does not post a strong bounce in May/Jun Canada may well have contracted for two consecutive quarters”.
“Markets pricing in a 55% chance of a BoC easing by September and almost 90% by year’s end”.
“These odds are by no means extreme and if anything have room to price in more near term easing risk”.
“USD/CAD should take out 2015 highs at 1.2830 on this run up and test 1.30 on a one month horizon”.