Home USD/CAD seen at 1.38 on a three-month view – NBF
FXStreet News

USD/CAD seen at 1.38 on a three-month view – NBF

The recent downgrade by Fitch for Government of Canada debt from AAA to AA+ coupled with dampening demand recovery for oil are likely to foster a further loonie depreciation. Therefore, economists at the National Bank of Canada target USD/CAD at 1.38 in the short-term.

Key quotes

“It is unfortunate that the Fitch downgrade occurred at a time when of a potential of dampening demand for oil because of tightening lockdown restrictions in some large US states because of Covid-19 cases.”

“We cannot ignore the fact that despite the new Canada-US-Mexico trade agreement, the US is contemplating imposing tariffs on Canadian aluminum.”

“We set our three-month target for the USD/CAD pair at 1.38.”

 

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.