USD/CAD heading towards 1.35 - Natixis

Research Team at Natixis, notes that the Canadian dollar appreciated sharply last week after the Bank of Canada meeting.

Key Quotes

“While the central bank kept key policy rates on hold, it also said that it was looking into how to stimulate what has been very disappointing growth because of the decline in investment in the oil sector and still weak household consumption (as evidenced by retail sales). Furthermore, the Bank of Canada does not seem concerned by the still weak inflation (1.3% in September). In this context, the divergence in the monetary policies of the Federal Reserve and Bank of Canada should weigh on the USD/CAD, which could test 1.35 ahead of the 30 November OPEC meeting.”