- Analytics
- News and Tools
- Market News
- USD/CAD to sink towards the 1.20 level by year-end – Scotiabank
USD/CAD to sink towards the 1.20 level by year-end – Scotiabank
Economists at Scotiabank continue to see merits in the longer-run outlook for the Canadian dollar. They expect the USD/CAD to tank towards the 1.20 level by the end of the year.
Potential gains in the CAD versus both the EUR and JPY where yields are poised to stay low
“We expect relatively firm commodity prices (energy) to help underpin the CAD.”
“Our interest rate forecast anticipates the BoC matching the Fed in terms of policy tightening this year but tightening more than the Fed in 2023 (50bps vs 25bps) – and we are more confident that the BoC delivers on these expectations.”
“The CAD should benefit from supportive term yield spreads against the USD and find gains against the low or lower-yielding currencies (e.g. the EUR and JPY) easier to come by.”
“We spot initial support at 1.23 below the market and resistance at 1.2810/15 ahead of 1.2950.”
“We forecast a year-end rate of 1.20 for USD/CAD versus the Bloomberg consensus of 1.24.”
© 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.
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.
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
