USDCAD to head towards 1.20 over the coming month - NBF

The Canadian dollar remains much weaker than levels that would typically be associated with current oil prices as the impact of unfavourable yields relative to the U.S., courtesy of a persistently dovish Bank of Canada, continues to dominate and is pulling back the loonie, according to analysts at NBF.

Key Quotes

“As we expect, some of the uncertainties surrounding NAFTA renegotiations and the housing market fade over the coming months, the inflation-targeting central bank will have no reason to keep ignoring rising inflation pressures. Improving yield differentials could push USDCAD towards 1.20 over the coming months.”