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8 Jan 2015
Expect ongoing near‐term CAD weakness – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, expects near-term CAD weakness to persist, further adding that USD/CAD bullish momentum might continue as long as the pair trades above 1.1763 levels.
Key Quotes
“CAD is flat to yesterday’s close, having not reached new lows in the Asian and European sessions; but with the downward trend still firmly in place. Risk aversion has eased and growth currencies, like AUD, are hinting at early signs of stabilizing; however WTI oil priced at $48.90 is a major concern and risk for CAD traders.”
“We expect CAD to depreciate further in the first six months of 2015 and then stabilize.”
“Markets are pushing out expectations for the first BoC interest rate hike, expecting just a 10% probability that the BoC hikes this year.“
“USDCAD short‐term technicals: bullish—technical signals still warn of upside risk; with bullish momentum favoured unless there is a break below the January 6th open of 1.1763. Near‐term resistance lies at 1.900.”
Key Quotes
“CAD is flat to yesterday’s close, having not reached new lows in the Asian and European sessions; but with the downward trend still firmly in place. Risk aversion has eased and growth currencies, like AUD, are hinting at early signs of stabilizing; however WTI oil priced at $48.90 is a major concern and risk for CAD traders.”
“We expect CAD to depreciate further in the first six months of 2015 and then stabilize.”
“Markets are pushing out expectations for the first BoC interest rate hike, expecting just a 10% probability that the BoC hikes this year.“
“USDCAD short‐term technicals: bullish—technical signals still warn of upside risk; with bullish momentum favoured unless there is a break below the January 6th open of 1.1763. Near‐term resistance lies at 1.900.”