9 Jun 2015
USD/CAD door open for a test of 1.2200 – Danske Bank
FXStreet (Edinburgh) - Christin Tuxen, Senior Analyst at Danske Bank, now sees the pair grinding lower to 1.22 in 1-month horizon.
Key Quotes
“While the market retains a slight easing bias for BoC we believe Poloz and co. are done cutting rates for now provided that oil prices remain above the USD60/bl for Brent and US activity recovers”.
“Near term, our outlook for a first Fed hike in September leaves room for upside to USD rates and greenback strength in turn. This suggests that USD/CAD should move another leg higher in coming months”.
“On a 12M horizon, we nevertheless project that USD/CAD will stabilise again driven by an oil recovery and the market retreating on the need for further BoC easing”.
“We have kept our 6- and 12M forecasts unchanged but now see USD/CAD at 1.22 and 1.24 in 1M and 3M, respectively”.
Key Quotes
“While the market retains a slight easing bias for BoC we believe Poloz and co. are done cutting rates for now provided that oil prices remain above the USD60/bl for Brent and US activity recovers”.
“Near term, our outlook for a first Fed hike in September leaves room for upside to USD rates and greenback strength in turn. This suggests that USD/CAD should move another leg higher in coming months”.
“On a 12M horizon, we nevertheless project that USD/CAD will stabilise again driven by an oil recovery and the market retreating on the need for further BoC easing”.
“We have kept our 6- and 12M forecasts unchanged but now see USD/CAD at 1.22 and 1.24 in 1M and 3M, respectively”.