USD/CAD Sell the Strength Into 1.2925 – Westpac
According to strategists at Westpac, bullish attempts towards 1.2920 could be considered as selling opportunities.
Key Quotes
“Our USD/CAD stance has shifted 180 degrees”.
“Our model remains upbeat but our macro and technical views are much more negative”.
“USD/CAD
momentum remains decisively lower, the break of 1.2850 a critical
technical threshold that should unlock further losses”.
“Upgraded
BoC growth projections this week thanks to the Trudeau fiscal stimulus
and a strong Jan GDP (+0.6%) should add yet more impetus to USD/CAD
weakness”.
“The BoC should still deliver a
neutral signal on policy but growth could be upgraded from 1.4% for 2016
to around 1.8% while the 2.4% forecast for 2007 could easily be lifted
to 2.8%”.
“We look to sell USD/CAD at 1.2925, stop 1.3055”.
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