USD/CAD could consolidate between 1.25 and 1.30 – Societe Generale

USD/CAD is seen returning to the 1.25-1.30 range in the medium to longer run, noted strategists at Societe Generale.

Key Quotes

“Softer commodity prices, a weak economy and concerns for NAFTA have all hurt CAD”.

“But 2017 and 2018 growth expectations are slowly improving, commodity prices are likely to trend a little higher from here, and CAD is significantly undervalued at current prices”.

“The return of USD/CAD to the 1.25-1.30 range may be fairly slow, but we’ll get there eventually”.