USD/CAD: Limited Downside Risk; Where To Target? – Barclays

Barclays Capital Research expects an additional BoC hike in Q1 2018 to undo the past “insurance cuts”, but acknowledging that the probability that the BoC moves earlier (in Q4 17) has increased given its upbeat assessment.

On the CAD front, Barclays sees limited downside risk to USD/CAD and continues to expect CAD weakness over the coming months as a subdued inflationary outlook does not imply a more aggressive rate hiking cycle relative to current market pricing.

In line with this view, Barclays is looking for USD/CAD to recover toward 1.33 by year-end and remains long USD/CAD through a 3m 1×2 call spread structure. 

Source: Barclays 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/~3/8cXu4LWJBRg/usdcad-limited-downside-risk-where-target-barclays

from Online Forex Trading Resource
View thesource article here

Advertisements

Leave a Reply

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

WordPress.com Logo

You are commenting using your WordPress.com 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