FXStreet (Edinburgh) – Christin Tuxen, Senior Analyst at Danske Bank, sees the pair coming under pressure in the near term.
Key Quotes
“The January and July cuts show that the BoC has no problem easing monetary policy at a time when the Fed is moving in the opposite direction”.
“The lower level of oil prices is taking its toll on the Canadian economy and if we are right in projecting another BoC cut this autumn at a time when the Fed delivers a first rate hike, CAD should stay under pressure”.
“This suggests that USD/CAD should see another leg higher in coming months. On a 12M horizon we nevertheless project that USD/CAD will stabilise again driven by an eventual but gradual oil recovery and the BoC staying on hold in 2016”.
(Market News Provided by FXstreet)