In view of strategists at Westpac, pullbacks in USD/CAD towards the 1.30 area remain buying opportunities.
Key Quotes
“With WTI threatening a break above $35 into a new higher price range risks on USD/CAD seem skewed to a test of 1.30 near term”.
“However, even if oil stabilises at slightly higher levels the full force of the overall oil price shock continues to reverberate through the economy, the labour market remains sluggish and numerous business surveys (BoC, RBC and CFIB) all flag further ongoing weakness”.
“Stronger than expected Q4 GDP is not what it seems either with final domestic demand contracting in the quarter. Prefer to buy USD/CAD into 1.30 looking for the longer term uptrend to resume into Q2”.
(Market News Provided by FXstreet)