9 Jan 2014
Flash: 2014 End of year USD/CAD at 1.20-25? - ANZ
FXstreet.com (Barcelona) - Brian Martin, Senior Strategist at ANZ is forecasting USD/CAD to be around the 1,20-25 mark by year end.
Key Quotes
“The divergence in Tuesday’s US and Canadian trade reports for November highlights the contrasting outlooks for the US and Canadian economies and their respective currencies.”
“The risk of Canadian inflation undershooting the Bank of Canada’s 2% target (+/-1%) as it did in 2013 and the reversal of capital flows into commodity/AAA-rated economies present additional headwinds to the Canadian dollar.”
“As a result, we expect the trend weakening in the Canadian dollar to continue through 2014, with the risk that it may even accelerate. “
“We target a year-end rate of USD/CAD1.20-25.”
Key Quotes
“The divergence in Tuesday’s US and Canadian trade reports for November highlights the contrasting outlooks for the US and Canadian economies and their respective currencies.”
“The risk of Canadian inflation undershooting the Bank of Canada’s 2% target (+/-1%) as it did in 2013 and the reversal of capital flows into commodity/AAA-rated economies present additional headwinds to the Canadian dollar.”
“As a result, we expect the trend weakening in the Canadian dollar to continue through 2014, with the risk that it may even accelerate. “
“We target a year-end rate of USD/CAD1.20-25.”