Back
15 May 2015
USD/CAD expected to see 1.23 by 2015-end – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, comments on the rate expectations by the BoC and Fed, and further forecasts USD/CAD to head towards 1.23 levels by 2015-end.
Key Quotes
“While we not expecting the BoC to cut rates again this year, the current strength of the CAD argues in favour of low rates for longer.”
“The next BoC policy meeting is scheduled for May 27. By then it will be clearer if the period of weakness in US growth is less transient that is currently hoped. A less robust US recovery or more persistent strength in the loonie could result in a more dovish tone from the BoC.”
“Given our forecast of a December Fed hike, we expect USD/CAD to push to the 1.23 region by year-end.”
Key Quotes
“While we not expecting the BoC to cut rates again this year, the current strength of the CAD argues in favour of low rates for longer.”
“The next BoC policy meeting is scheduled for May 27. By then it will be clearer if the period of weakness in US growth is less transient that is currently hoped. A less robust US recovery or more persistent strength in the loonie could result in a more dovish tone from the BoC.”
“Given our forecast of a December Fed hike, we expect USD/CAD to push to the 1.23 region by year-end.”