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 http://feedproxy.google.com/~r/Efxnews/~3/FZMc3y-Byh0/cad-game-changing-month-cad-whats-next-ing

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