USD/CAD points to further consolidation – Danske Bank

By FXStreet Jens Pedersen, Senior Analyst at Danske Bank, sees the pair in a rangebound pattern in the short-term.

Key Quotes

“The oil price has rallied on the re-pricing of the path of Federal Reserve rate hikes this year and next year and a decline in USD. Both factors have weighed on USD/CAD over the past month”.

“We see stable USD/CAD in the short-run as we expect oil prices to stay around the current level”.

“On 6M-12M, a recovery in oil prices, a stronger external economic situation and valuation would send USD/CAD lower”.
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Source:: FX Street