What is the outlook for USD/CAD in the fourth quarter of 2020?
Credit Suisse discusses USD/CAD outlook and sees the pair trading in a range between 1.3150 and 1.3650 in Q4 2020.
“CAD has underperformed most cyclical G10 FX this year; we do see that changing. Markets continue to price in a tighter policy rate for Canada than for any other G10 country. Meanwhile, the Fed’s strategy review has raised questions about whether the BoC will follow. This biases the policy surprise risk in a dovish direction vs other G10 FX. The recent spike in new Covid cases and the possibility of new lockdowns also dulls CAD’s relative tactical performance prospects,” CS notes.
“We see USDCAD trading in a range between 1.3150 and 1.3650 in Q4 2020,” CS adds.
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