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23 Jan 2015
USD/CAD upside remains intact – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, reasserted the bullish tone in USD/CAD.
Key Quotes
“We expect USDCAD to trend higher, with the next major level of resistance the psychological 1.25. Next week’s focus will be Canadian GDP”
“USDCAD from here, the fundamental drivers for the currency, remain”:
“Oil’s ability to sustain this period of stabilizarion (with WTI trading between $45 and $50)”.
“The broad USD movement, which we expect to continue to support ongoing USD appreciation”.
“Expectation for BoC policy from here—with the OIS market pricing in a 50% chance of an interest rate cut within the next year; juxtaposed against an expected Q2 interest rate hike by the Fed”.
“Sentiment and flows—which we see as increasingly CAD negative, with a building short position”.
Key Quotes
“We expect USDCAD to trend higher, with the next major level of resistance the psychological 1.25. Next week’s focus will be Canadian GDP”
“USDCAD from here, the fundamental drivers for the currency, remain”:
“Oil’s ability to sustain this period of stabilizarion (with WTI trading between $45 and $50)”.
“The broad USD movement, which we expect to continue to support ongoing USD appreciation”.
“Expectation for BoC policy from here—with the OIS market pricing in a 50% chance of an interest rate cut within the next year; juxtaposed against an expected Q2 interest rate hike by the Fed”.
“Sentiment and flows—which we see as increasingly CAD negative, with a building short position”.