10 Mar 2015
USD/CAD buy on dips towards 1.2350 – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, drops in the pair could be seen as buying opportunities.
Key Quotes
“The BoC statement has upended rate expectations, giving next to no comfort to those looking for another cut down the road with the Bank noting 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 this week will underperform as the energy patch deflates. USD/CAD still a buy though preferably into major support levels nearer 1.2355”.
“Last week’s close was the highest weekly close in 5 weeks. Expect further slow, steady gains in the coming weeks amid modest positive momentum”.
Key Quotes
“The BoC statement has upended rate expectations, giving next to no comfort to those looking for another cut down the road with the Bank noting 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 this week will underperform as the energy patch deflates. USD/CAD still a buy though preferably into major support levels nearer 1.2355”.
“Last week’s close was the highest weekly close in 5 weeks. Expect further slow, steady gains in the coming weeks amid modest positive momentum”.