Westpac are looking under 1.3100 for buy opportunities in USD/CAD
- buying /CAD around 1.3085
- targeting 1.3285
- stop 1.3025
Citing:
- CAD strongest G10 currency in June
- prospects for further USD/CAD declines … tougher ... into 1.3000
- area coinciding with a range of key supports
And:
- Bank of Canada rate cut pricing remains very guarded
- only 11bp in cuts priced to Dec 2019
- less than the Fed (-64bp), the RBNZ (-40bp), the RBA (-22bp), the ECB (-16bp) the SNB (-18bp) and the BoE (-14bp)
- Firming inflation and a decent BoC business survey will encourage the BoC next week to reiterate an optimistic ton
- but global risks have grown and the Bank may well amplify these concerns
Risks include:
- Bank of Canada paying little attention to global risks
- Canadian employment data
- FOMC minutes
- Powell leaning strongly dovish