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27 Mar 2015
USD/CAD could stabilize in H2 – Danske Bank
FXStreet (Edinburgh) - The pair might test higher levels in the near term, although it could recover ground towards mid-2015, suggested Christin Tuxen, Senior Analyst at Danske Bank.
Key Quotes
“The comments from Bank of Canada’s Poloz yesterday that the Bank of Canada is comfortable given the ‘insurance’ the central bank had taken out by its surprise January rate cut suggest that the risk of another ‘insurance’ cut should continue to weigh on the CAD near term and send USD/CAD higher still”.
“With the oil price under pressure still (notwithstanding the latest geopolitical concerns) and Canadian data soft the Bank of Canada remains in a state of alert but if we are right that the oil price will recover in H2 and that the Fed will hike no earlier than September, Bank of Canada should refrain from cutting again and USD/CAD should eventually stabilise”.
Key Quotes
“The comments from Bank of Canada’s Poloz yesterday that the Bank of Canada is comfortable given the ‘insurance’ the central bank had taken out by its surprise January rate cut suggest that the risk of another ‘insurance’ cut should continue to weigh on the CAD near term and send USD/CAD higher still”.
“With the oil price under pressure still (notwithstanding the latest geopolitical concerns) and Canadian data soft the Bank of Canada remains in a state of alert but if we are right that the oil price will recover in H2 and that the Fed will hike no earlier than September, Bank of Canada should refrain from cutting again and USD/CAD should eventually stabilise”.