Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

USD/CAD pair likely to see moderate downside risks, to trade around 1.28 by end-2019

The Canadian dollar has firmed against the US dollar after weakening to a 20-month low at the beginning of this year, noted Lloyds Bank in a research report. The sharp fall and subsequent rebound in Brent Crude prices led the USD/CAD to 1.36 from 1.32 and back. From current levels, there are moderate downside risks to the currency pair, said Lloyds Bank.

Oil prices have recovered and are likely to underpin the CAD. Meanwhile, despite the consumer price inflation rising to 2 percent and a jobless rate at multi-decade lows, communications from Bank of Canada officials continue to be ‘dovish’.

Even so, the change in language from the Federal Reserve has led the 2-year US-Canadian interest rate differential to fall back from recent ‘wides’. If this theme continue, it argues for additional CAD strength. Furthermore, the market still holds a considerable ‘net short’ position in the Canadian dollar.

“As it slowly starts to reduce this position, the risks from a positioning perspective remain skewed towards CAD buying. Given the fundamental and technical outlooks, we remain bearish on USD/CAD, forecasting 1.28 at end-2019”, added Lloyds Bank.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was very bullish at 114.674, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -79.4616more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

July 2 15:00 UTC Released

DKCurrency Reserves

Actual

449.6 Stale

Forecast

Previous

451.7 Stale

July 2 13:45 UTC Released

USISM NY Biz Conditions

Actual

50 %

Forecast

Previous

48.6 %

January 31 00:00 UTC 813946813946m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 813946813946m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 825766825766m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 813946813946m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 825766825766m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 813946813946m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 813946813946m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 813946813946m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.