16 Dec 2015
USD/CAD aims for 1.40 in the near term – Westpac
FXStreet (Edinburgh) - Strategists at Westpac expect the pair to visit the key 1.40 handle within the next three months.
Key Quotes
“Few if any redeeming features for CAD right here, yield support for the currency notably down sharply (-40bp in the 2yr part of the curve in the last few weeks), with no obvious bottom in sight”.
“Positioning no barrier either, CFTC spec shorts barely half their summer peak level”.
“Gov Poloz continues to take a "glass half-full" approach but he should be forced into a reappraisal as the terms of trade continues to bleed through the economy into 2016. 1.40+ achievable on a 1-3mth horizon”.
Key Quotes
“Few if any redeeming features for CAD right here, yield support for the currency notably down sharply (-40bp in the 2yr part of the curve in the last few weeks), with no obvious bottom in sight”.
“Positioning no barrier either, CFTC spec shorts barely half their summer peak level”.
“Gov Poloz continues to take a "glass half-full" approach but he should be forced into a reappraisal as the terms of trade continues to bleed through the economy into 2016. 1.40+ achievable on a 1-3mth horizon”.