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USD/CAD: what’s next? Two views

The Canadian dollar is looking for a new direction. Where will it go? Here are two opinions:

Here is their view, courtesy of eFXnews:

USD/CAD: Range Bound In USD Strength & Weakens: What’s Next? – BofA Merrill

Bank of America Merrill Lynch Research notes that USD/CAD has been fairly range  bound,  centered around the low 1.30s,  since last  autumn,  and this range has held up  amid both  the bout of overall USD strength after the US election as well as its relatively  recent  weakness.

However, BofAML sees  CAD as roughly 5% overvalued  mainly on the back of    CAD holding up relatively well compared to its core medium-term  determinants, oil prices and US-Canadian interest rate differentials.

“Both of these factors  have lately been pointing to a bit more CAD downside than recently seen in the market.  Consequently,  we continue to look for USD-CAD to finish the year at 1.39,” BofAML projects.

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USD/CAD: Range Bound In USD Strength & Weakens: What’s Next? – BofA Merrill

Bank of America Merrill Lynch Research notes that USD/CAD has been fairly range  bound,  centered around the low 1.30s,  since last  autumn,  and this range has held up  amid both  the bout of overall USD strength after the US election as well as its relatively  recent  weakness.

However, BofAML sees  CAD as roughly 5% overvalued  mainly on the back of    CAD holding up relatively well compared to its core medium-term  determinants, oil prices and US-Canadian interest rate differentials.

“Both of these factors  have lately been pointing to a bit more CAD downside than recently seen in the market.  Consequently,  we continue to look for USD-CAD to finish the year at 1.39,” BofAML projects.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.