What is the outlook for USD/CAD in the next one month and three months?
Danske Research discusses USD/CAD outlook and targets the pair at 1.34 in 1 and 3 months.
Here is their view, courtesy of eFXdata:
“USD/CAD has generally mirrored EUR/USD moves closely over the recent months, reflecting how the global environment is in the driver’s seat for the cross.
Looking ahead, our call on the global economy, oil prices and by extension EUR/USD mean we pencil in a move lower in the cross over the coming months,” Danske notes.
“Bank of Canada has cut its benchmark rate forcefully to 0.25%, which the central bank now deems the “effective lower bound”. The BoC has also launched lending operations and asset purchase programmes in government, provincial and corporate bonds. For the CAD, however, we deem the global environment more important for now,” Danske adds.
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