Outlook for USD/CAD

Quotes from Societe Generale Cross Asset Research:

-Bank of Canada Governor Stephen Poloz seemed to indicate in a speech yesterday that the rate cut in January was an insurance policy and not the start of a series of moves.

-The consensus of forecasters that the BOX will cut rates again, to 50bp, on 4 March but may be rethinking that position.

-CAD gained, of course. We still expect the negative effects of cheaper oil on exploration, and the economy overall, to take USD/CAD through 1.30 this year, but we can pause for a while.