CAD: Nearer To The Bottom Than The Top; Attractive M/T Buy Vs USD – CIBC

The Canadian dollar has been on the back foot alongside the fall in oil prices. What’s next?

Here is their view, courtesy of eFXnews:

CIBC FX Strategy Research argues that we’re likely approaching the lower end of the range for CAD making it an attractive buy around current levels versus the USD.

“Even though the BoC is “decidedly neutral” at the moment, the current level of the currency gives it more room to take a positive tone without worrying too much about an uncompetitive exchange rate. Furthermore, we’ve even seen efforts to talk up the loonie when it dropped below 70 cents,” CIBC adds.

In line with this view, CIBC sees a modest appreciation of the CAD later in the year with USD/CAD dropping to 1.34.

USD/CAD is trading circa 1.3655 as of writing.

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