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9 Apr 2015
USD/CAD: Key fundamentals - Scotiabank
FXStreet (Guatemala) - Camila Sutton, Chief FX strategist at Scotiabank explained that next week’s BoC meeting and oil prices are the two most important near‐term risks.
Key Quotes:
"From a fundamental and charting perspective, oil prices appear to have bottomed, however geopolitics is one of the core drivers and is difficult to predict, accordingly risks remain high. The BoC is widely expected to hold rates at 0.75 next week; however the CAD reaction will be in the tone and MPR."
"The C.D. Howe institute’s monetary policy council suggests that the Canadian backdrop is one that should support interest rates on hold at 0.75%, with the first hike in the spring of 2016—however there was wide divergence in views."
Key Quotes:
"From a fundamental and charting perspective, oil prices appear to have bottomed, however geopolitics is one of the core drivers and is difficult to predict, accordingly risks remain high. The BoC is widely expected to hold rates at 0.75 next week; however the CAD reaction will be in the tone and MPR."
"The C.D. Howe institute’s monetary policy council suggests that the Canadian backdrop is one that should support interest rates on hold at 0.75%, with the first hike in the spring of 2016—however there was wide divergence in views."