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23 Mar 2016
USD/CAD points to further consolidation – Danske Bank
Jens Pedersen, Senior Analyst at Danske Bank, sees the pair in a rangebound pattern in the short-term.
Key Quotes
“The oil price has rallied on the re-pricing of the path of Federal Reserve rate hikes this year and next year and a decline in USD. Both factors have weighed on USD/CAD over the past month”.
“We see stable USD/CAD in the short-run as we expect oil prices to stay around the current level”.
“On 6M-12M, a recovery in oil prices, a stronger external economic situation and valuation would send USD/CAD lower”.
Key Quotes
“The oil price has rallied on the re-pricing of the path of Federal Reserve rate hikes this year and next year and a decline in USD. Both factors have weighed on USD/CAD over the past month”.
“We see stable USD/CAD in the short-run as we expect oil prices to stay around the current level”.
“On 6M-12M, a recovery in oil prices, a stronger external economic situation and valuation would send USD/CAD lower”.