USD/CAD appears to have based around 1.34-1.35 - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that USD/CAD appears to have based for the time being around 1.34-1.35 but would not get too carried away with topside potential beyond 1.36-1.37.

Key Quotes

“The BoC has finally made a pivot toward less accommodation, embracing the firmer growth picture in their recent statement, after long downplaying it, and dropping their implicit open ended promise to maintain stimulus indefinitely.”

“The Bank remains a long way from removing stimulus but the hawkish pivot should still nevertheless inoculate CAD somewhat from multiple threats including Trump NAFTA renegotiation risk and the vagaries of the oil market.”

‘USD/CAD a sell into 1.36/1.37, EUR/CAD a sell into 1.52, AUD/CAD a sell into 1.02.”