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26 Feb 2015
USD/CAD well supported at 1.2360/1.2310 – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, sees pullbacks in the pair facing strong support around 1.2360/1.2310.
Key Quotes
“Poloz smashed near certain rate cut expectations, noting that the January cut was the appropriate amount of insurance, that it bought the Bank some time, and that the Bank’s $60/bbl assumption for oil has held up well”.
“USD/CAD faces a critical test in coming days, with important support levels located at 1.2360 and 1.2310”.
“But we remain comfortable advocating medium upside for USD/CAD however”.
“Even if the BoC does not cut next week the statement is sure to have a strong dovish bias, noting downside risks to growth and inflation”.
Key Quotes
“Poloz smashed near certain rate cut expectations, noting that the January cut was the appropriate amount of insurance, that it bought the Bank some time, and that the Bank’s $60/bbl assumption for oil has held up well”.
“USD/CAD faces a critical test in coming days, with important support levels located at 1.2360 and 1.2310”.
“But we remain comfortable advocating medium upside for USD/CAD however”.
“Even if the BoC does not cut next week the statement is sure to have a strong dovish bias, noting downside risks to growth and inflation”.