USD / CAD opened in January at 1.2733 and reached a monthly low at 1.2590 on January 21 and a high at 1.2881 on January 28. In February, Mizuho Bank analysts expect the pair to move into the 1.26 / 1.29 range.
Key statements:
“Some observers say that the launch of the vaccine has been delayed, but if a framework is put in place soon and vaccines are implemented consistently, then national economic growth could recover to pre-pandemic levels by the end of 2021.”
“With markets oscillating between risk aversion and risk appetite due to the coronavirus situation, it appears that WTI prices will continue to trade around $ 40-50 a barrel. Crude oil prices will rise at times in the hope of an economic recovery and coordinated production cuts, though they will move strongly to the top overall on concerns about declining demand. However, several countries will experience economic recoveries in the medium term, so it is unlikely that WTI prices will collapse, and the USD / CAD pair will also continue to trade below 1.30 ”.
“The Bank of Canada will likely maintain its current pace of quantitative easing. This is another reason why the USD / CAD pair will mostly move between 1.26-1.29 “.
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