USD/CAD To Test 1.30 N-Term; GBP/USD Fair Value Is 1.2887

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thenews
28496
thenews  

Crude prices are holding onto gains from late Wednesday, setting a risk-on tone across markets, as OPEC ministers have signalled a likely production cut at their next official meeting on 30 November...USDCAD failed to sustain a break of its 200-day moving average on the topside for a second day in a row Wednesday and retreated below 1.31 as oil prices gained. We think USD vulnerability is likely to see USDCAD trade down towards 1.30 in the near-term.

We think GBP is likely to weaken over the coming weeks. Our short-term fair value model BNP Paribas STEER continues to highlight that the currency actually looks expensive versus rates and equities. Short-term fair value for Cable is below 1.29 at 1.2887 and for EURGBP it stands at 0.8695. Market expectations for Bank of England easing continues to look too conservative in our view, with our 5bp of rates cuts priced for the November meeting versus our economists’ expectations for a 15bp cut.


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forextips
156
forextips  

USD/CAD today’s Exchange Rate is 1.3547.

 

Our Recommendation: 

USD/CAD is going down and is recommended to sell.

 

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