CAD: Has Some Wood To Chop Into BoC Targeting USD/CAD At 1.32 – TD

The Canadian dollar traded in a choppy manner amid significant volatility in oil prices. The focus now shifts to the rate decision by the Bank of Canada. What will the BOC do?
Here is their view, courtesy of eFXdata:

TD Research discusses USD/CAD outlook into tomorrow’s BoC policy meeting and likes more downside through the 1.32 level.

Ahead of the BoC, we like downside in USDCAD and also like holding long CAD exposure against JPY and CHF this week.

CAD and RUB are among a handful of currencies that have bucked the perky USD today. We still think CAD has some wood to chop into the BoC, arguing for a test of the Nov lows just below 1.32. We also like holding a long CAD basket against the likes of JPY and CHF in the short-run,” TD notes.

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