USD/CAD Door Open for Further Decline – Westpac
According to Richard Franulovich, Strategist at Westpac, the pair remains poised for further downside.
Key Quotes
“Weakness
in USD/CAD has further to go, a potentially higher March CPI next week
thanks to stronger energy prices may well be a catalyst”.
“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”.
