BNP on USD/CAD:
- “Commodity currencies will face a challenging H1 but should perform better in H2 as commodity prices stabilize and positive domestic stories start to transpire.”
- BNPP looks for USDCAD to rise to 1.21 by Q2
- Followed by a decline to 1.16 in Q4
More, from Mark Chandler of RBC Capital Markets
- Keep an eye on Deputy Governor Lane’s speech on Tuesday “for more details on what it might mean in aggregate (and whether it is consistent with estimates made in early December that oil price weakness might be worth 0.3pp off previously expected GDP growth)”
Bank of Canada Deputy Governor Timothy Lane will be giving a speech to the Madison International Trade Association regarding oil prices and their impact on the economy. The speech will be published on the Bank’s website at 1845GMT Tuesday
