FXStreet (Edinburgh) - Jane Foley, Senior Currency Strategist at Rabobank, expects the greenback to appreciate towards the 1.34 handle in a 6-month’s view.
Key Quotes
“Although the Canadian economy is still adjusting to the blow stemming from the energy sector, the two interest rates cuts announced this year coupled with the soft tone of the CAD have softened monetary conditions significantly”.
“The weaker CAD has lead to an increased in underlying inflation. While this should be largely transitory this supports our view that BoC rates are set to remain on hold for the time being”.
“That said, with the Fed looking likely to start its tightening cycle next month we continue to expect USD/CAD to edge higher towards 1.34 on a 6 mth view”.
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