FXStreet (Delhi) – Research Team at Westpac, suggest that they remain long USD/CAD from 1.3238 (stop at 1.3260).
Key Quotes
“USD/CAD’s uptrend may have stalled in the last month but by the same token, and perhaps tellingly, CAD has failed to capitalise on what has been a notable bounce in energy prices (WTI +19% from its late Aug lows), a stabilisation in the local data flow and Poloz’ more upbeat take on the Canadian outlook.”
“These improved atmospherics are not sustainable in any case. Growth prospects remain challenged by the ongoing terms of trade shock, fiscal restraint and a lack of progress in non-commodity exports. The BoC’s forecast for 2% annualised growth in H2 looks decidedly optimistic and the Bank could be forced back into action by their 2 Dec meeting and certainly no later than the end of Q1 2016. 1.35 still the target before the year is out.”
(Market News Provided by FXstreet)