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22 Apr 2015
USD/CAD buy the dips to 1.20 – Westpac
FXStreet (Edinburgh) - Strategists at Westpac regard the pullbacks to the area of 1.20 as opportunities to buy the pair.
Key Quotes
“We have long argued for a sustained rally toward 1.30 but the price action argues otherwise, USD/CAD’s break below 1.2350 opens up a run toward 1.20”.
“The BoC’s confidence in a strong snapback in growth after Q1’s stall and the break up through key levels in oil are the key catalysts for USD/CAD’s recent heavy tone”.
“However, crude oil gains much beyond $60/bbl will likely prove self-defeating, higher prices likely to see some mothballed output brought back on line”.
“Weak China growth momentum suggests the demand side of the oil equation is unlikely to boost prices much farther in any case”.
“We do not share the BoC’s optimism for a strong bounce back either. For the time being though we would stand aside and look to buy USD/CAD into/ below 1.20”.
Key Quotes
“We have long argued for a sustained rally toward 1.30 but the price action argues otherwise, USD/CAD’s break below 1.2350 opens up a run toward 1.20”.
“The BoC’s confidence in a strong snapback in growth after Q1’s stall and the break up through key levels in oil are the key catalysts for USD/CAD’s recent heavy tone”.
“However, crude oil gains much beyond $60/bbl will likely prove self-defeating, higher prices likely to see some mothballed output brought back on line”.
“Weak China growth momentum suggests the demand side of the oil equation is unlikely to boost prices much farther in any case”.
“We do not share the BoC’s optimism for a strong bounce back either. For the time being though we would stand aside and look to buy USD/CAD into/ below 1.20”.