USD/CAD Sell the Rallies to 1.29/1.30 – Westpac
Richard Franulovich, Strategist at Westpac, has recommended selling the pair on strength toward 1.29/1.30 if seen.
Key Quotes
“Near term outlook more neutral but a better seller into 1.29-1.30 if seen”.
“A
slightly diminished terms of trade shock thanks to higher oil prices
along with fiscal stimulus suggest H2 should see some upside growth
surprises”.
“CAD continues to have appeal vs its
commodity bloc brethren AUD and NZD, the latter hamstrung by heightened
RBA and RBNZ easing risk, and related to that, a much lower inflation
trajectory in Australia and NZ vs. Canada”.
“The supply side
adjustment in energy markets appears to be much more advanced than in
iron ore too, the latter showing comparatively little if any meaningful
rationalisation”.
