USD/CAD seen at 1.28 in 12-month – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, believes the pair could head towards the 1.2800 region within a year’s view.

Key Quotes

“The Canadian economy’s close dependence on the US and oil industries, means the ‘loonie’ has been highly vulnerable to political events in terms of Trump’s presidency and OPEC’s oil supply freeze”.

“Our call for a near-term stronger USD should lift the cross near term but we maintain the view that USD/CAD will end 2017 at a level lower than current as valuation and a normalising growth outlook should work as a gravitating force on the cross”.

“We forecast USD/CAD at 1.32 in 1M (previously 1.33), 1.32 in 3M (unchanged), 1.30 in 6M (unchanged) and 1.28 in 12M (unchanged)”.