18 Feb 2015
USD/CAD could see further upside in H2 – Danske Bank
FXStreet (Edinburgh) - Christin Tuxen, Senior Analyst at Danske Bank, believes the pair could resume the upside in the second half of the present year.
Key Quotes
“The market is pricing almost another full 25bps cut from BoC, which we reckon will not materialize”.
“Provided we are correct in seeing the oil price bottoming out in Q1, CAD downside should be limited from here”.
“Still, we look for the Fed to hike early, which suggests that USD/CAD should see another leg higher mid year”.
“On a 12M horizon we nevertheless project that USD/CAD will head lower again driven by an oil recovery and BoC retreating on the need for further easing”.
Key Quotes
“The market is pricing almost another full 25bps cut from BoC, which we reckon will not materialize”.
“Provided we are correct in seeing the oil price bottoming out in Q1, CAD downside should be limited from here”.
“Still, we look for the Fed to hike early, which suggests that USD/CAD should see another leg higher mid year”.
“On a 12M horizon we nevertheless project that USD/CAD will head lower again driven by an oil recovery and BoC retreating on the need for further easing”.