Home CAD: A Function Of Global Risk Sentiment & Oil Prices; USD/CAD Close To Fair Value – Credit Agricole
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CAD: A Function Of Global Risk Sentiment & Oil Prices; USD/CAD Close To Fair Value – Credit Agricole

The Canadian economy has been showing mixed data. What is the outlook for USD/CAD?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research discusses the CAD outlook and  adopts a neutral bias in the near-term, noticing that USD/CAD is close to its fair value around current levels.

“The CAD continues to trade as a function of global risk sentiment and oil prices. This also means that for the currency to continue to rally, we would need to see further sustained recovery in global commodity prices and risk sentiment,”  CACIB notes.

“Indeed, our FAST FX model is suggesting that USD/CAD is trading close to its fair value derived on the basis of current levels of risk appetite and commodity prices among other drivers,” CACIB adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.