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9 Apr 2015
USD/CAD could visit 1.2800 medium-term – Westpac
FXStreet (Edinburgh) - According to Strategist Imre Speizer at Westpac, the pair could head towards 1.2800 in the upcoming weeks, helped by USD momentum.
Key Quotes
“Next week’s Canadian calendar highlight is the Bank of Canada meeting (Wed). At its January meeting it surprised by cutting by 25bp to 0.75%”.
“The March meeting noted that easing was having the desired effect and did not signal further rate cuts”.
“However since then, oil prices have fallen further and are starting to impact the economy more broadly”.
“USD/CAD remains locked inside a sideways range bounded by 1.24 and 1.28”.
“Momentum is currently neutral but could rise following the BOC meeting. Further ahead, we expect the 1.28 range ceiling to be tested as the US dollar reasserts its uptrend”.
Key Quotes
“Next week’s Canadian calendar highlight is the Bank of Canada meeting (Wed). At its January meeting it surprised by cutting by 25bp to 0.75%”.
“The March meeting noted that easing was having the desired effect and did not signal further rate cuts”.
“However since then, oil prices have fallen further and are starting to impact the economy more broadly”.
“USD/CAD remains locked inside a sideways range bounded by 1.24 and 1.28”.
“Momentum is currently neutral but could rise following the BOC meeting. Further ahead, we expect the 1.28 range ceiling to be tested as the US dollar reasserts its uptrend”.