USD/CAD still eyes a test of 1.34/1.35 – Westpac

Chief Currency Strategist at Westpac Richard Franulovich still thinks the pair could regain the 1.34/1.35 area.

Key Quotes

“USD/CAD’s stalled push lower into the all important psychological 1.30 level suggests that a multi day bounce back toward 1.34-1.35 is in the offing”.

“Admittedly the tenor of Canada’s data has shown a solid improvement lately, especially on the jobs and trade front, but neither yield spreads nor crude oil are pointing decisively in favour of a break lower in USD/CAD”.

“The underlying background atmospherics still favour a higher USD/CAD, certainly as long as Trump threatens to dismantle NAFTA and with March FOMC hike odds marching higher”.