CAD: A Game-Changing Month For CAD; What's Next? – ING

ING FX Strategy Research notes that June has been a game-changing month for our CAD outlook.

“Risks of a perfect storm brewing over the summer period have reduced with concerns over financial stability and NAFTA renegotiations easing.

Add to this a less dovish BoC and one may argue that we’ve seen a trifecta of ‘good’ news for the CAD. Both Governor Poloz and his Deputy (Wilkins) have hinted that policy rates may have bottomed; this hawkish reassessment has triggered a clear out in short CAD positions – which we note were at a 5-year high at the end of May,” ING adds.

What’s next for CAD?

ING argues that although the near-term outlook for the loonie has turned positive, they are wary of hastily calling for any cyclical turning point.

As such, ING sees USD/CAD returning to 1.36 in 3-month on the back of soft oil prices and weaker macro data.

Source: ING Global Markets Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
View thesource article here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s