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20 Apr 2015
USD/CAD points to stabilization in 12-m – Danske Bank
FXStreet (Edinburgh) - In the view of Christin Tuxen, Senior Analyst at Danske Bank, the pair could stabilize in a 12-month horizon.
Key Quotes
“The market is pricing close to another full 25bp cut from BoC, which we reckon will not materialize”.
“We expect the oil price to bottom mid year, and thus CAD downside from this front should be limited from here”.
“Near term, our outlook for a first Fed hike remains earlier than the market predicts. This suggests that USD/CAD should see 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 amended our USD/CAD profile slightly and now see a little more upside to the cross in 3-6M as USD strength plays out ahead of the first Fed hike.
Key Quotes
“The market is pricing close to another full 25bp cut from BoC, which we reckon will not materialize”.
“We expect the oil price to bottom mid year, and thus CAD downside from this front should be limited from here”.
“Near term, our outlook for a first Fed hike remains earlier than the market predicts. This suggests that USD/CAD should see 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 amended our USD/CAD profile slightly and now see a little more upside to the cross in 3-6M as USD strength plays out ahead of the first Fed hike.