Jens Pedersen, Senior Analyst at Danske Bank, sees the pair in a rangebound pattern in the short-term.
Key Quotes
“The oil price has rallied on the re-pricing of the path of Federal Reserve rate hikes this year and next year and a decline in USD. Both factors have weighed on USD/CAD over the past month”.
“We see stable USD/CAD in the short-run as we expect oil prices to stay around the current level”.
“On 6M-12M, a recovery in oil prices, a stronger external economic situation and valuation would send USD/CAD lower”.
(Market News Provided by FXstreet)