14 Jan 2016
USD/CAD: 1.50 on the cross hairs – Westpac
FXStreet (Edinburgh) - In view of Richard Franulovich, Strategist at Westpac, the pair remains well posied to visit the 1.50 and 1.60 handles in the medium term.
Key Quotes
“The Bank of Canada meets next week, the sharp fall in energy prices and very limp data so far in Q4, pointing to ongoing recessionary conditions, should see the BoC cut their main policy rate 25bp to 0.25%. Markets are not well prepared, pricing in only a 32% chance of a rate cut, much as was the case with the BoC’s two rate cuts in Jan and July 2015”.
“That said, talk of 1.50 and even 1.60 in 2016 suggests that this burst of USD/CAD strength is very well owned and nearing its denouement”.
Key Quotes
“The Bank of Canada meets next week, the sharp fall in energy prices and very limp data so far in Q4, pointing to ongoing recessionary conditions, should see the BoC cut their main policy rate 25bp to 0.25%. Markets are not well prepared, pricing in only a 32% chance of a rate cut, much as was the case with the BoC’s two rate cuts in Jan and July 2015”.
“That said, talk of 1.50 and even 1.60 in 2016 suggests that this burst of USD/CAD strength is very well owned and nearing its denouement”.