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4 Jun 2015
USD/CAD points to 1.27 in 1-month – Westpac
FXStreet (Edinburgh) - The Canadian dollar could weaken to the 1.2700 area vs. its American counterpart in a 1-month horizon, according to Strategist at Westpac Richard Franulovich.
Key Quotes
“CAD a strong sell on multiple crosses. Markets pricing just a 50% chance of another BoC rate cut through to year’s end, yet 2015 growth forecasts are tumbling amid the sting of a much weaker than expected negative Q1 GDP print and a weak start to Q2 thanks to poor April trade data and four consecutive sub-50 PMI prints”.
“As argued for a few weeks now, recovery momentum from the Q1 stall appears sorely lacking”.
“1.27 the target for USD/CAD on a one month horizon”.
Key Quotes
“CAD a strong sell on multiple crosses. Markets pricing just a 50% chance of another BoC rate cut through to year’s end, yet 2015 growth forecasts are tumbling amid the sting of a much weaker than expected negative Q1 GDP print and a weak start to Q2 thanks to poor April trade data and four consecutive sub-50 PMI prints”.
“As argued for a few weeks now, recovery momentum from the Q1 stall appears sorely lacking”.
“1.27 the target for USD/CAD on a one month horizon”.