Quotes from UniCredit Research:
-A stronger USD and ongoing low commodity prices would be helpful in reaching our year-end target of 1.13 in USD-CAD. However, we do not expect a one-way move, as this cross haslittle upward momentum. We also see a strong divergence in the FX rhetoric of the BoC compared to the RBNZ and the RBA.
-While the RBNZ sounds pretty aggressive and the RBA is a little less concerned about the strength of its currency, the BoC governor Stephen Poloz has so far not directly expressed his preference for a weaker local currency, which nevertheless, seems to be his favorable direction, as can be derived from his latest testimony before the Senate Banking, Trade and Commerce Committee.
-Next week’s price action in USD-CAD will not only depend on the US employment report, as its Canadian counterpart is due too.
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