Back
24 Feb 2014
Flash: USD/CAD to soar towards 1.20/1.25 by year end - ANZ
FXStreet (Bali) - According to Amber Rabinov, FX Strategist at ANZ Research, the expected ear-end rate of USD/CAD is projected at 1.20-25.
Key Quotes
"Below-target inflation has meant the Bank of Canada has had to maintain a very accommodative monetary policy despite signs of an improvement in economic growth. While the annual pace of inflation has steadily improved since October 2013, watch for a reversal in the February report due to base and weather effects."
"An important component of the BoC’s positive growth outlook for the domestic economy is an improving trade profile predicated upon a recovery in US activity. However, the loss of momentum in the recent US data flow could delay the growth recovery in the domestic Canadian economy."
"We maintain our expectation that the Canadian dollar will weaken through 2014 as the BoC sustains its dovish stance. We continue to target a year-end rate of USD/CAD 1.20-25."
Key Quotes
"Below-target inflation has meant the Bank of Canada has had to maintain a very accommodative monetary policy despite signs of an improvement in economic growth. While the annual pace of inflation has steadily improved since October 2013, watch for a reversal in the February report due to base and weather effects."
"An important component of the BoC’s positive growth outlook for the domestic economy is an improving trade profile predicated upon a recovery in US activity. However, the loss of momentum in the recent US data flow could delay the growth recovery in the domestic Canadian economy."
"We maintain our expectation that the Canadian dollar will weaken through 2014 as the BoC sustains its dovish stance. We continue to target a year-end rate of USD/CAD 1.20-25."