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20 Apr 2015
USD/CAD heading to 1.33 by 2016 - TDS
FXStreet (Guatemala) - Shaun Osborne & Mazen Issa, analysts at TD Securities noted the conditions surrounding USD/CAD.
Key Quotes:
"All told, further downward pressure on USDCAD persists as the BoC has signaled that it is in no rush to do anything on the monetary policy front. But, we cannot firmly rule out another rate cut as more timely economic data is needed to determine whether the Bank is underestimating second round pressures from the oil shock."
"This will not become clearer until the July interest rate meeting or possibly later. Until then, we would look for additional downside in funds in the coming weeks but we think the prospect of a downside surprise relative to the Bank’s growth forecast in H2-2015 will eventually set us up for a second half rebound in USD/CAD—like the seasonal patterns predict. "
"TD forecast USD/CAD rising to 1.33 by Q1 2016."
Key Quotes:
"All told, further downward pressure on USDCAD persists as the BoC has signaled that it is in no rush to do anything on the monetary policy front. But, we cannot firmly rule out another rate cut as more timely economic data is needed to determine whether the Bank is underestimating second round pressures from the oil shock."
"This will not become clearer until the July interest rate meeting or possibly later. Until then, we would look for additional downside in funds in the coming weeks but we think the prospect of a downside surprise relative to the Bank’s growth forecast in H2-2015 will eventually set us up for a second half rebound in USD/CAD—like the seasonal patterns predict. "
"TD forecast USD/CAD rising to 1.33 by Q1 2016."