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26 Jun 2015
USD/CAD now seen at 1.33 in Q4 – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the pair ticking higher to the 1.3300 area towards year-end.
Key Quotes
“Real GDP growth is expected to rebound modestly in Q2 following a Q1 contraction. Composition of growth will see continued weakness in business investment (commodity related) and stronger growth elsewhere, including in non-energy exports tied to a firming US economy”.
“The Bank of Canada is expected to pare back some of its recent optimism, but reaffirm the qualitative recovery narrative over the second half of the year”.
“We remain high conviction CAD bears. Stronger growth and tighter Fed monetary policy augur positively for the USD. But the alternative - weaker growth which leaves the Canadian economy even further from BoC objectives - can only undermine the CAD. We see solid USDCAD support at 1.21/1.22 now and target 1.33 in Q4”.
Key Quotes
“Real GDP growth is expected to rebound modestly in Q2 following a Q1 contraction. Composition of growth will see continued weakness in business investment (commodity related) and stronger growth elsewhere, including in non-energy exports tied to a firming US economy”.
“The Bank of Canada is expected to pare back some of its recent optimism, but reaffirm the qualitative recovery narrative over the second half of the year”.
“We remain high conviction CAD bears. Stronger growth and tighter Fed monetary policy augur positively for the USD. But the alternative - weaker growth which leaves the Canadian economy even further from BoC objectives - can only undermine the CAD. We see solid USDCAD support at 1.21/1.22 now and target 1.33 in Q4”.