Market news
25.06.2020, 11:24

USD/CAD to reach 1.40 again, loonie unable to retain bullish momentum - CIBC

FXStreet reports that Avery Shenfeld from CIBC Capital Markets notes that the loonie rebounded from levels below the key 1.3500 psychological mark thanks to a turn in crude prices but such a move is not sustainable and expects USD/CAD to touch the 1.40 level. For year-end, the pair is forecast at 1.38.

“We’ve reduced our targets for C$ weakness ahead due to recovery in oil. However, we do not believe the Canadian dollar will be able to sustain that run, and will see 1.40 again at some point during this recovery.”

“Unlike the Eurozone or Japan, Canada entered this recession with a weak current account and trade balance, and the prior expansion’s lackluster growth in real exports suggests its overvalued on trade fundamentals.” 

“Canada’s overweight in energy points to a weaker 2020 starting point versus the US. Look for the Bank of Canada to pound home the message the output gap will remain wide over its full forecast horizon, implying a long wait for any move off near-zero rates, and helping to take some luster off the currency.”

“Q3 20: 1.39 | Q4 20: 1.38.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location