29 Apr 2015
USD/CAD targets 1.1800/50 in the near term – Westpac
FXStreet (Edinburgh) - The pair could extend its current downside to the area of 1.1800/50, suggested strategists at Westpac.
Key Quotes
“Likely a 1.20-1.25 trade until further notice, with a break back through 1.25+ at some point still favoured as Canada’s self-appointed cheerleader in chief - Poloz – finds that his optimism for a strong Q2 growth bounce back proves underwhelming”.
“For now he is reiterating that the Jan rate cut was "insurance" and there is no need for more. But he could be singing a different tune in coming months”.
“Recent close below the Feb/Apr range and particularly the parallel channel bottom at 1.2350/80 confirms that a material multi-week top is in place in USDCAD. Target 1.1800/50 trend support”.
Key Quotes
“Likely a 1.20-1.25 trade until further notice, with a break back through 1.25+ at some point still favoured as Canada’s self-appointed cheerleader in chief - Poloz – finds that his optimism for a strong Q2 growth bounce back proves underwhelming”.
“For now he is reiterating that the Jan rate cut was "insurance" and there is no need for more. But he could be singing a different tune in coming months”.
“Recent close below the Feb/Apr range and particularly the parallel channel bottom at 1.2350/80 confirms that a material multi-week top is in place in USDCAD. Target 1.1800/50 trend support”.