CAD: Caution Is Warranted N-Term; Looking To Sell USD/CAD North Of 1.2700 – Credit Suisse

0

What is the forecast for USD/CAD?

Here is their view, courtesy of eFXdata:

Credit Suisse adopts a tactical cautious bias on CAD and looks to sell USD/CAD on rallies north of 1.2700.

From a tactical standpoint, we see risks that suggest caution is warranted in picking entry levels for short USDCAD positions, ideally north of 1.2700,” CS notes.

“Housing exuberance has driven markets to expect several BoC hikes: an announcement of macroprudential measures could cause a partial retracement, as seen with the RBNZ. Also, markets see high likelihood of the BoC announcing tapering of asset purchases on 21 Apr: with Covid vaccinations lagging the US and lockdowns still in place in Ontario and Quebec, we are less certain that these expectations will realize near-term,” CS adds.

For lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

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.