FXStreet (Delhi) – Research Team at Commonwealth Bank of Australia has lifted its USD/CAD forecasts and expects the currency pair to remain higher for an extended period of time.
Key Quotes
“We have lifted our USD/CAD forecasts. We now expect USD/CAD to peak at 1.4000 in Q1 2016 (previously 1.3800) and to stay higher for longer thereafter.”
“The risk of another Bank of Canada (BoC) policy rate cut later this year or early next year is unlikely to diminish which should continue to undermine the CAD and 2-year Canadian swap rates.”
“Canada is technically in recession largely because of the drag from non-residential business construction investment and inventories.”
“Going forward, business investment in Canada’s oil and gas sector (3% of Canada’s GDP) could shrink by more than the BoC currently expects. The reason is that Brent crude oil prices (currently near US$48 per barrel) are now well below the BoC’s US$65 forecast assumption highlighted in its July monetary policy report.”
For more information, read our latest forex news.
No comments:
Post a Comment