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28 Jul 2015
USD/CAD still points to 1.3500 - Westpac
FXStreet (Edinburgh) - In the opinion of strategists at Westpac, the pair could test the 1.3500 handle in the medium term.
Key Quotes
“With the Bank of Canada forced into fresh easing, local press has been highlighting concerns on the economic outlook and possible QE given the proximity of the zero lower bound/emergency 0.25% rate setting”.
“This should only increase if May GDP prints in the negative territory for the fifth consecutive month (consensus is currently flat)”.
“WTI has fallen back below $50/bbl and continues to slide so it is difficult to see the case for CAD strength here. We maintain our USD/CAD 1.35 target in the coming months”.
Key Quotes
“With the Bank of Canada forced into fresh easing, local press has been highlighting concerns on the economic outlook and possible QE given the proximity of the zero lower bound/emergency 0.25% rate setting”.
“This should only increase if May GDP prints in the negative territory for the fifth consecutive month (consensus is currently flat)”.
“WTI has fallen back below $50/bbl and continues to slide so it is difficult to see the case for CAD strength here. We maintain our USD/CAD 1.35 target in the coming months”.