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21 May 2015
USD/CAD could test 1.25-1.26 – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, believes the pair could re-visit the 1.25-1.26 area in the near term.
Key Quotes
“The BoC is unlikely to ruffle feathers next week with Governor Poloz reiterating only this week that the economy is poised to bounce back from the oil-driven stall in Q1 and that growth is on track to hit potential by end-2016. Q1 GDP carries far bigger CAD bearish risks”.
“The displacement in investment and production in the energy patch is of course at least as big in Canada as it is in the US, if not substantially more negative”.
“Moreover, recently quarterly GDP growth prints have stacked up well with swings in US GDP and Q1 GDP looks like printing near -1%”.
“Yet just two of twenty forecasters look for a negative print for Q1 Canadian GDP”.
“USD/CAD appears to have well and truly rejected any trade below 1.20 and a soft Q1 GDP is likely to see the nascent uptrend extend comfortably further next week. 1.25-1.26 the range to target in coming days”.
Key Quotes
“The BoC is unlikely to ruffle feathers next week with Governor Poloz reiterating only this week that the economy is poised to bounce back from the oil-driven stall in Q1 and that growth is on track to hit potential by end-2016. Q1 GDP carries far bigger CAD bearish risks”.
“The displacement in investment and production in the energy patch is of course at least as big in Canada as it is in the US, if not substantially more negative”.
“Moreover, recently quarterly GDP growth prints have stacked up well with swings in US GDP and Q1 GDP looks like printing near -1%”.
“Yet just two of twenty forecasters look for a negative print for Q1 Canadian GDP”.
“USD/CAD appears to have well and truly rejected any trade below 1.20 and a soft Q1 GDP is likely to see the nascent uptrend extend comfortably further next week. 1.25-1.26 the range to target in coming days”.