USD/CAD is trading at 1.4138 today
TD Research discusses USD/CAD outlook and maintains a long position* targeting a move towards 1.4650.
"For now, CAD has captured some spotlights in the wake of the BoC meeting, the wobble in oil prices and the concerns about the pivot in the credit cycle. It's a perfect storm for the Canadian economy, especially as it relates to the loop between leverage, housing, and consumption," TD notes.
"We're still long USDCAD, targeting a move to 1.4650...Given the savings and investment imbalance, CAD will have to shoulder part of the burden for the economy," TD adds.
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