USD/CAD: Weakness Has Further to Go - Westpac
Richard Franulovich, Research Analyst at Westpac, suggests that the
weakness in USD/CAD has further to go, a potentially higher March CPI
this week thanks to stronger energy prices may well be a catalyst.
Key Quotes
“The
backdrop continues to suit USD/CAD downside, the Fed unlikely to
deliver any hawkish surprises. It may not be obvious from the current
price action but CAD longs might arguably find greater mileage owing CAD
against the likes of AUD and NZD, rates markets in AU/NZ more
consistently leaning toward pricing in rate cuts and given that oil
prices seem more likely to sustain gains than iron ore, the latter
showing substantially less progress on the supply-side adjustment
front.”
