USD/CAD turning from bullish to bearish - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that they are shifting their 1 month view on USD/CAD from bullish to bearish as USD/CAD looks to test the bottom of the rough 1.3000-1.3500 range that has formed in the last four months.

Key Quotes

“Energy prices are hardly providing a strong bearish impetus for USD/CAD but with Fed appetite for a faster rate hike profile seemingly weak there is scope for USD/CAD to trade heavily and relinquish some of its Fed related yield support.”

“On the Canadian side of the ledger there has been a notable improvement, full time employment growth in the last 3 months hitting +190k, the fastest in 11 year, raising risks that the BoC might jettison its mild easing bias.”