What is the outlook for CAD in the near-term?
Here is their view, courtesy of eFXdata:
Credit Agricole CIB Research discusses CAD outlook and adopts a cautious bias in the near-term.
“With many positives in the price of the currency by now as highlighted by our short-term fair value FAST FX model, we worry that the CAD could be vulnerable to a potential renewed deterioration in risk sentiment on the back of lingering inflation fears in the market. In addition, the BoC has recently signalled that a more persistent CAD appreciation could become a downside risk to their outlook,” CACIB notes.
“Last but not least, the progress made towards a new nuclear deal with Iran could be seen as an important downside risk to the outlook for oil prices, that could hurt the CAD’s performance in the near term,” CACIB 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.