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14 May 2015
USD/CAD further downside likely – Westpac
FXStreet (Edinburgh) - Strategist at Westpac Richard Franulovich believes the USD-weakness could drag the pair lower.
Key Quotes
“A break of 1.1940 in USD/CAD, a key support level extending back to the BoC’s surprise rate cut in January, would likely open the door to further substantial losses”.
“Even though we doubt the Canadian economy will bounce back as quickly as BoC Gov Poloz seems to think, the increasingly grim USD picture warns that USD/CAD may well trade lower in coming weeks”.
“Suspect CAD will struggle on most crosses though, amid questionable local growth momentum as the weakness in the energy patch bleeds through the broader economy”.
Key Quotes
“A break of 1.1940 in USD/CAD, a key support level extending back to the BoC’s surprise rate cut in January, would likely open the door to further substantial losses”.
“Even though we doubt the Canadian economy will bounce back as quickly as BoC Gov Poloz seems to think, the increasingly grim USD picture warns that USD/CAD may well trade lower in coming weeks”.
“Suspect CAD will struggle on most crosses though, amid questionable local growth momentum as the weakness in the energy patch bleeds through the broader economy”.