The US dollar has been under pressure from the major currencies. What is the outlook for USD/CAD?
Here is their view, courtesy of eFXdata:
Credit Agricole CIB Research keeps flagging USD/CAD as undervalued and prone for a correction higher.
“USD/CAD looking undervalued. Our FAST FX model suggests that USD/CAD is significantly undervalued. The spot exchange rate has moved lower faster than its fair value estimated using oil prices, global equities as well as relative interest rates.
Indeed, for the moment, the rally in equities is a stronger driver of USD/CAD at present,” CACIB notes.
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