What is the forecast for the Canadian dollar against other commodity currencies in the coming weeks?
Credit Agricole CIB Research flags a scope for CAD to outperform its peers (NZD, AUD) over the coming weeks.
“We suspect that the recent volatility of global oil prices likely could have disadvantaged the CAD vs other commodity currencies…Looking ahead, the focus this week will be on the September Canadian labour market data and the August trade data. FX investors will be looking for evidence of continuing albeit slowing labour market recovery that would confirm the BoC’s outlook for the economy and policy,” CACIB notes.
“Ultimately, however, the CAD may take its cue from the resilience of the latest improvement in risk sentiment as well as the robustness of global oil prices,” CACIB adds.
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