Market news
15.07.2021, 09:00

USD/CAD: BoC to support gradual strengthening to sub-1.20 levels – ING

FXStreet reports that economists at ING think the BoC will end asset purchases by the end of 2021, allowing markets to speculate on an earlier than projected hike, and providing more support to the loonie.

“Our view remains that considering the resilience of the Canadian economy, high vaccination rates, concerns about a booming housing market and government bonds that have dropped quite sharply since mid-May, the BoC remains well on track to end its QE programme by the end of the year. We are pencilling in the first rate hike in 2H22, but the risks are increasingly skewed towards an earlier move.”

“We think the market will remain attracted by CAD’s set of fundamentals: a) one of the most hawkish central banks in the developed space; b) a strong economic recovery and the highest share (70%) of people with at least one vaccine dose among major economies; and c) resilient oil prices even after the turbulent OPEC+ meeting. We think that if our expectations that the BoC will end its asset-purchase programme by year-end proves correct, markets will be inclined to price in an earlier start of the hiking cycle in Canada. We remain of the view that USD/CAD will trade below 1.20 by the end of 2021.”

© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location