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3 Mar 2015
USD/CAD may rise to 1.31 in Q3 – BAML
FXStreet (Barcelona) - Ian Gordon of BofA-Merrill Lynch, forecasts USD/CAD to rise to 1.31 in Q3 before falling slightly to 1.30 by 2015-end, viewing oil prices as the primary driver for this bearish view.
Key Quotes
“We see USD-CAD rising to 1.31 in Q3 before ending the year at 1.30.”
“We continue to believe CAD will remain under pressure as oil prices will likely fall further (based on BofAML forecasts), and the risk management approach of the BoC pushes it in the direction of an easing bias.”
“Contrasted with increasing risks of a June Fed rate hike, policy differentials should also pressure the currency.”
Key Quotes
“We see USD-CAD rising to 1.31 in Q3 before ending the year at 1.30.”
“We continue to believe CAD will remain under pressure as oil prices will likely fall further (based on BofAML forecasts), and the risk management approach of the BoC pushes it in the direction of an easing bias.”
“Contrasted with increasing risks of a June Fed rate hike, policy differentials should also pressure the currency.”