21 Jul 2015
USD/CAD points to 1.35 in the medium term – Westpac
FXStreet (Edinburgh) - In the opinion of strategists at Westpac, the pair could reach the 1.35 area in a 3 to 6-month horizon.
Key Quotes
“Long held view that the Canadian economy will underwhelm and force the BoC into fresh easing finally a reality”.
“The proximity of the zero bound limits the extent of easing but strictly speaking the Bank could (and should eventually) cut once again, taking interest rates back to their credit crunch emergency setting at 0.25%”.
“The BoC’s latest forecasts incorporate the known contraction in Q2 but their forecasts for 1.5% annualised growth in Q3 and 2.5% in Q4 remain on the optimistic side”.
“USD/CAD 1.35 very achievable on a 3-6 month horizon”.
“The medium term/long term momentum / trend structure remains positive and indicative of a sustainable rally. 10 year highs are an obstacle up to 1.3065 that should be overcome in time”.
Key Quotes
“Long held view that the Canadian economy will underwhelm and force the BoC into fresh easing finally a reality”.
“The proximity of the zero bound limits the extent of easing but strictly speaking the Bank could (and should eventually) cut once again, taking interest rates back to their credit crunch emergency setting at 0.25%”.
“The BoC’s latest forecasts incorporate the known contraction in Q2 but their forecasts for 1.5% annualised growth in Q3 and 2.5% in Q4 remain on the optimistic side”.
“USD/CAD 1.35 very achievable on a 3-6 month horizon”.
“The medium term/long term momentum / trend structure remains positive and indicative of a sustainable rally. 10 year highs are an obstacle up to 1.3065 that should be overcome in time”.