USD/CAD sell the uptick to 1.35 – Westpac

FX Strategists at Westpac have recommended selling the pair on occasional moves to 1.3500.

Key Quotes

“CAD proving resilient in the face of new daily lows in oil, the latter more fairly valuing USD/CAD nearer 1.35. But, doubt that the slide in oil will last much longer, certainly the demand side looks OK as China’s Caixin PMI/housing data remain decent”.

“By Autumn the first local activity green shoots should emerge, partly bounce back from the Fort McMurray fire disruptions and as Trudeau's fiscal stimulus kicks in”.

“USD/CAD a sell into 1.35. US elections the major risk factor, a tight race will see USD/CAD firm given Trump’s anti-NAFTA/immigration stance”.

“USD/CAD remains in an uptrend though it looks like it will be a slow grind upwards”.