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Analysts at Citibank forecast the USD/CAD pair at 1.31 over 0-3 months, at 1.28 in 6-12M and at 1.22 in the long term.  

Key Quotes:

“Although the October Bank of Canada (BoC) was more dovish than expected with the Bank’s 2020/21 GDP forecasts lowered and an emphasis placed on the downside risks of trade wars, the domestic Canadian economy remains resilient and the BoC on hold which support CAD.”

“Global downside still the main risk which may lead BoC cut rate.”

“Governor Poloz’s denial of insurance easing implies cuts will only come with a material worsening of the external outlook. CAD supportive given Canadian rates currently price an almost 100% probability of a 25bp cut in 6 months time.”

“USDCAD has broken good resistance around 1.3275. Good resistance in the 1.3348-1.3383 range looks likely to be tested. Next pivotal support at 1.3016.”