14 Jul 2015
USD/CAD could test 1.32 in the long-term – Goldman Sachs
FXStreet (Edinburgh) - In the view of analysts at Goldman Sachs, spot could advance to the area of 1.3200 in a year’s time.
Key Quotes
“We maintain our $/CAD forecasts at 1.28, 1.30 and 1.32, which we adopted on January 25”.
“We continue to expect Canada’s growth to lag that of the US as the substantial fall in oil prices weighs on the Canadian economy, in particular business investment”.
“We believe the decline in oil prices has the potential to set in motion an adverse investment cycle, which could weigh materially on growth”.
“Further, the Bank of Canada’s forecast relies on a substantial pick-up in non-energy exports later this year. We are sceptical that this pick-up will materialize”.
“As a result, we continue to expect that the BoC will ultimately need to provide more accommodation later this year”.
“At the same time, the improving US outlook and decline in the currency so far will provide some offset.
“Persistent low oil prices and diverging monetary policy underpin our FX forecast for a weaker CAD”.
Key Quotes
“We maintain our $/CAD forecasts at 1.28, 1.30 and 1.32, which we adopted on January 25”.
“We continue to expect Canada’s growth to lag that of the US as the substantial fall in oil prices weighs on the Canadian economy, in particular business investment”.
“We believe the decline in oil prices has the potential to set in motion an adverse investment cycle, which could weigh materially on growth”.
“Further, the Bank of Canada’s forecast relies on a substantial pick-up in non-energy exports later this year. We are sceptical that this pick-up will materialize”.
“As a result, we continue to expect that the BoC will ultimately need to provide more accommodation later this year”.
“At the same time, the improving US outlook and decline in the currency so far will provide some offset.
“Persistent low oil prices and diverging monetary policy underpin our FX forecast for a weaker CAD”.