The overall strength of the dollar is likely to fade soon, say Standard Chartered economists. They see the CAD bullish on a twelve-month horizon and see that the current corrective phase offers attractive entry points to the market in the short and medium term.
Key statements:
“The Canadian economy has rebounded rapidly. The growth and employment data are strong. Canada has buoyant real estate markets, favorable trading positions, and a central bank that the path to monetary policy normalization has already begun. We expect the latter to be strengthened by the Bank of Canada tomorrow. “
“Canada has benefited from the increase in oil prices and from strong US growth In addition, Canada is now among the world leaders in vaccination rates.”
“USD / CAD should meet with a strong resistance band between 1.2550 and 1.2700, which can provide an attractive entry level for an eventual decline below 1.2250 towards 1.2000.”
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