USD/CAD poised for a test of 1.25? – Westpac

Richard Franulovich, Strategist at Westpac, believes the pair could visit the 1.2500 handle in the next months.

Key Quotes

“Still structurally biased toward lower USD/CAD levels”.

“H2 growth looking decent enough as activity bounces back from the Fort McMurray wildfire disruptions and as the Trudeau fiscal stimulus kicks into gear in Q4”.

“Stronger than expected May full time jobs, and decent manufacturing and retail sales for April all hint that underlying growth momentum may already be stronger than many presume”.

“Oil prices meanwhile looking more and more resilient with each passing day. USD/CAD more likely to test 1.25 than 1.35 in summer”.