USD/CAD points to further gains – Westpac

Richard Franulovich, Chief Currency Strategist at Westpac, believes the pair could attempt a re-test of 1.34/1.35.

Key Quotes

“USD/CAD’s stalled push lower into the all important psychological 1.30 level suggests at worst a multi day bounce back toward 1.34-1.35 may be in the offing and at best some consolidation just above 1.3000 is plausible”.

“As the slide over shows neither yield spreads nor crude oil support a solid move below 1.3000. The run-up in crude oil appears to have stalled, the commodity settling in a $51-$55 consolidation range while yield spreads have been broadly tracking sideways in recent sessions too”.

“The background atmospherics are certainly bullish enough for USD/CAD, including Governor Poloz’s easing bias and Trump’s threats to dismantle NAFTA”.