Analysts at Westpac Banking Corporation explained that they will buy weakness inUSD/CAD at 1.2320.
Key Quotes:
"We are far from convinced that oil has bottomed given: 1) strikes at US refineries offer only a temporary reprieve and won't permanently alter the supply imbalance; 2) the sharp fall in the US rig count is deceiving as drillers always cut the least productive and marginal rigs first; and 3) as the US nat gas market shows, producers can bleed for years amid a supply glut, keeping prices stuck at generational lows for a long time."
"Bottom line, USD/CAD fair value continues to grind higher and the case for another BoC March rate cut is strong. 1.30 for USD/CAD still very much the 3 month target."
Key Quotes:
"We are far from convinced that oil has bottomed given: 1) strikes at US refineries offer only a temporary reprieve and won't permanently alter the supply imbalance; 2) the sharp fall in the US rig count is deceiving as drillers always cut the least productive and marginal rigs first; and 3) as the US nat gas market shows, producers can bleed for years amid a supply glut, keeping prices stuck at generational lows for a long time."
"Bottom line, USD/CAD fair value continues to grind higher and the case for another BoC March rate cut is strong. 1.30 for USD/CAD still very much the 3 month target."
