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15 May 2015
CAD to weaken further in the medium/long term – HSBC
FXStreet (Edinburgh) - Weakness around the Canadian dollar could push USD/CAD to 1.30 towards year-end, according to analysts at HSBC.
Key Quotes
“The CAD appreciated markedly early in Q2, aided by the rebound in oil prices, diminished expectations for further Bank of Canada easing, and a broad pullback in the USD”.
“Those same factors may well continue to lend the CAD support in the near-term. But further out, we are less optimistic about the Canadian economy’s ability to weather the oil price shock, and expect that the CAD will push lower over time”.
“We expect only modest gains in the currency pair through Q2 and Q3, up to 1.25 and 1.26 respectively, with more pronounced weakening later in the year to 1.30”.
Key Quotes
“The CAD appreciated markedly early in Q2, aided by the rebound in oil prices, diminished expectations for further Bank of Canada easing, and a broad pullback in the USD”.
“Those same factors may well continue to lend the CAD support in the near-term. But further out, we are less optimistic about the Canadian economy’s ability to weather the oil price shock, and expect that the CAD will push lower over time”.
“We expect only modest gains in the currency pair through Q2 and Q3, up to 1.25 and 1.26 respectively, with more pronounced weakening later in the year to 1.30”.