Home USD/CAD looks to 1.4000 in three months’ time – Goldman Sachs
FXStreet News

USD/CAD looks to 1.4000 in three months’ time – Goldman Sachs

Analysts at Goldman Sachs revised their down their outlook for USD/CAD in a three-month horizon while upped for the 12-month period.

Key quotes

“USD/CAD’s 3-month forecast is now at 1.40 vs. the earlier projection of 1.42. 

Cautious on CAD in the next quarter due to the extent of its recent rally. 

6-month forecasts for USD/CAD seen at 1.37, unchanged from the previous forecast.

12-month rate upped to 1.32 vs. the previous forecast of 1.30.

USD/CAD broke below a few key levels last week as a pro-risk rotation across markets supported higher-beta currencies. But we continue to expect any further rally to be short-lived. 

The Bank of Canada will likely ease policy in the coming months, and Canada still has domestic fragilities-housing market risks, energy sector recession-as well as other less favourable fundamentals than other economies with similar currency drivers (e.g., NOK).” 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.