USD/CAD seen at 1.33 in 1-month – Danske Bank

Analysts at Danske Bank believe USD/CAD could edge higher towards the 1.3300 handle in the near term.

Key Quotes

“We still expect the fundamentally undervalued ‘loonie’ to gradually appreciate over the coming year on the back of valuation, a gradually higher oil price, markets re-pricing BoC monetary policy and a generally improved growth outlook in North America”.

“On the back of the decline in oil prices and with the outlook of more short-term USD strength we lift our forecast profile to 1.33 in 1M(from 1.31), 1.31 in 3M(1.28), 1.28 in 6M(1.26) and 1.25 in 12M(1.24)”.