FXStreet (Edinburgh) – Strategists at Westpac see the pair climbing to the key 1.3000 level in a month’s horizon.
Key Quotes
“Our long held view that the Q2 bounce back will underwhelm is finally getting some traction with April monthly GDP contracting, for the fourth month in a row and the fifth month in the last six”.
“If monthly GDP does not post a strong bounce in May/Jun Canada may well have contracted for two consecutive quarters”.
“Markets pricing in a 55% chance of a BoC easing by September and almost 90% by year’s end”.
“These odds are by no means extreme and if anything have room to price in more near term easing risk”.
“USD/CAD should take out 2015 highs at 1.2830 on this run up and test 1.30 on a one month horizon”.
(Market News Provided by FXstreet)