Analysts at Citibank, warn that any uncertainty from US-China trade talk may increase the market volatility and restrain the performance of the Canadian dollar. They see the USD/CAD pair trading at 1.31 over the next three months.
Key Quotes:
“Although the October BoC was more dovish than expected with the Bank’s 2020/21 GDP forecasts lowered and an emphasis placed on the downside risks of trade wars, the domestic Canadian economy remains resilient and the BoC on hold which support CAD.”
“USD/CAD is within the short-term up channel, but RSI reached overbought territory, implying that upside may be limited at 1.3340. The pair may resume downtrend to 1.3016 upon consolidation, with interim support at 1.3042.”
Share
