CAD: Break of 1.3200-1.3230 could spur a move toward 1.30 - BBH
|Research Team at BBH, notes that the Canadian dollar was the best performing major currency last week (+1.7%) after the Norwegian krone (1.8%).
Key Quotes
“Two fundamental considerations were at work. First is the 11.6% rally in oil price following OPEC's announcement. Second is the seven basis point narrowing of the Canadian discount to the US on the two-year money. The US dollar fell to CAD1.3255 before the weekend, a two-month low.”
“The five and 20-day moving averages crossed for the first time since late October. Technical factors warn of the risk of additional near-term US dollar losses, though it closed near its lower Bollinger Band (~CAD1.3290). A break of CAD1.3200-CAD1.3230 could spur a move toward CAD1.30. The Bank of Canada meets next week, but policy is on steadfastly on hold.”
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