USD/CAD: 1.30 Not Ruled Out – Rabobank
According to Jane Foley, Senior FX Strategist at Rabobank, the pair
could re-test the psychological key at 1.30 later in the year.
“Canada’s March employment report brought a greater than expected 40.6K rise in jobs. This report sits comfortably with the recent better tone of consumer confidence (boosted by fiscal loosening) and with the stronger than expected Q1 GDP report, at 0.6% q/q”.
“The combined impact of these releases has been to pare remaining speculation of BoC easing. However, the BoC is likely to remain wary about potential headwinds”.
“Despite this year’s recovery in oil prices, huge inventories combined with risk of further bad news on the Chinese economy suggests that momentum could peter out. This factor combined with risk that the BoC will retain a cautious policy outlook suggests USD/CAD may yet pop back above the 1.30 level later this year”.