USD/CAD: Weakness has further to go - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that the weakness in USD/CAD has further to go, a potentially higher March CPI this week thanks to stronger energy prices may well be a catalyst.

Key Quotes

“The backdrop continues to suit USD/CAD downside, the Fed unlikely to deliver any hawkish surprises. It may not be obvious from the current price action but CAD longs might arguably find greater mileage owing CAD against the likes of AUD and NZD, rates markets in AU/NZ more consistently leaning toward pricing in rate cuts and given that oil prices seem more likely to sustain gains than iron ore, the latter showing substantially less progress on the supply-side adjustment front.”