CAD: Divergence derailed, but not for long – BNPP

FXStreet (Delhi) – Vassili Serebriakov, Research Analyst at BNP Paribas, suggests that BoC inaction suggests overcrowded CAD shorts are vulnerable to a squeeze in the short term.

Key Quotes

“However, policy divergence should still push USDCAD to new highs either via Fed rate hikes (positive risk scenario) or BoC cuts (negative risk scenario).

We now expect USDCAD to reach 1.50 in Q3 2016.”