USD/CAD downside limited? – Westpac

According to strategists at Westpac, USD/CAD’s downside could have less room to extend.

Key Quotes

“This could be it for USD/CAD's downleg since mid-Jan, neither CA-US 2yr bond spreads nor oil prices offering much confidence for sustained trade in USD/CAD sub-1.35”.

“In fact 2yr bond spreads and oil prices both more fairly value USD/CAD nearer 1.38-1.40, substantially higher than current levels”.