21 Jan 2015
Surprise BoC cut - usdcad 1.25 was our target - SG
FXStreet (Guatemala) - Sebastien Galy, analyst at Societe Generale explained that the Bank of Canada has taken the bull by the horn deciding to target a weaker CAD.
Key Quotes:
"It is a surprise so early but indicates the emphasis on adjusting the CAD for a very sharp reversal in its terms of trade gains since 2002 (oil)."
"We target USD/CAD 1.25 with a possible overshoot to 1.28. Our long term models argued for 1.28."
Key Quotes:
"It is a surprise so early but indicates the emphasis on adjusting the CAD for a very sharp reversal in its terms of trade gains since 2002 (oil)."
"We target USD/CAD 1.25 with a possible overshoot to 1.28. Our long term models argued for 1.28."