19 Feb 2015
USD/CAD bullish in the medium-term – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, sees the pair is poised for further weakness in the upcoming months.
Key Quotes
“Oil prices have been strongly correlated with inventory releases as inventories have climbed dramatically outside of their five‐year range”.
“However, inventories alone are unlikely enough to push WTI through its $43.58 lows and accordingly are a risk to CAD but unlikely to push the currency to fresh lows either”.
“Expectations for interest rate cuts in Canada have been relatively stable but continue to drift slightly lower (CAD negative)”.
“Today the BoC’s Cote speaks on inflation expectations and policy, her text is re‐ leased at 12:15. We have made no change to our medium term outlook of CAD weakness (USDCAD strength)”.
Key Quotes
“Oil prices have been strongly correlated with inventory releases as inventories have climbed dramatically outside of their five‐year range”.
“However, inventories alone are unlikely enough to push WTI through its $43.58 lows and accordingly are a risk to CAD but unlikely to push the currency to fresh lows either”.
“Expectations for interest rate cuts in Canada have been relatively stable but continue to drift slightly lower (CAD negative)”.
“Today the BoC’s Cote speaks on inflation expectations and policy, her text is re‐ leased at 12:15. We have made no change to our medium term outlook of CAD weakness (USDCAD strength)”.