The Canadian dollar didn’t have the best year, to say the least. Where is it headed next?
The team at BMO sees the range as staying intact until year end, and explains:
Here is their view, courtesy of eFXnews:
The recent ranges continue to hold and Friday’s CPI numbers offered no surprises to lead to a break out of either side.
Order wise the short term picture on Funds looks familiar. We expect to see offers stacked up a little higher from Domestic Corporates around the 1.1325/1.1350 area, with talk of Option barriers still lying at 1.1400.
To the downside there should be some mild support around last week’s lows i.e. 1.1210/1.1225, with System/Model stops building up below 1.1200. Reserve Manager selling interest still seems to be knocking around on any rallies
So although on a more medium term basis our core view remains for Usd/Cad to make fresh highs in to year end, we may see a period of consolidation first.
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