5 Mar 2015
USD/CAD buy on dips towards the mid-1.2300s – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, recommends buying the pair around the mid-1.23s.
Key Quotes
“The BoC statement has upended rate expectations, giving next to no comfort to those looking for another cut down the road”.
“The Bank noted the current degree of stimulus is “appropriate” and that “financial conditions in Canada have ease materially since Jan”.
“That, along with the persistent grind higher in energy prices, even as crude inventories in the US continue to rise, has effectively killed USD/CAD’s rally”.
“We suspect jobs next week will underperform as the energy patch deflates”.
“USD/CAD still a buy though preferably into major support levels nearer 1.2355”.
Key Quotes
“The BoC statement has upended rate expectations, giving next to no comfort to those looking for another cut down the road”.
“The Bank noted the current degree of stimulus is “appropriate” and that “financial conditions in Canada have ease materially since Jan”.
“That, along with the persistent grind higher in energy prices, even as crude inventories in the US continue to rise, has effectively killed USD/CAD’s rally”.
“We suspect jobs next week will underperform as the energy patch deflates”.
“USD/CAD still a buy though preferably into major support levels nearer 1.2355”.