USD / CAD is still danced at high levels amid rising concerns over oil prices that in fact the main source of export revenue Canada. However, analysts predict the loonie's rally will last much longer, in line with expectations that the Bank of Canada will cut rates at its meeting on January 20.
USD / CAD had retreated to the range 1.4190an on US session yesterday, but rose again to reach 1.4290an the Asian session this morning (13/1). The Canadian dollar is still in a strong sell pressure with respect to impairment where WTI crude oil prices fell to below the level of 30 dollars for the first time in 12 years. On the other hand, investors remain worried about China's stock market crisis and the devaluation of the Renminbi. Chinese trade balance data reported better than expected this morning, but the central bank again lowered the benchmark rate. As a result, the positive trade balance data by commodity markets have not responded to the news lifted.
While uncertainty over Beijing's currency policy is still of concern to the market, David Doyle seed analyst at Macquarie Group Ltd. predicting the Canadian dollar exchange rate which currently stands at around 70 cents US dollar would fall to 59 cents US Dollars in 2016, along with the worsening oil prices.
Doyle, who is a forecaster USD / CAD's best last year according to Bloomberg version also predicts the Canadian central bank will cut its benchmark interest rate to 0:25 per cent on January 20. Furthermore, despite the measures taken, he said, the weakening of the manufacturing sector and the increasingly intense competition in the US market which became its main trading partners will complicate the Canadian economy to move forward.
USD / CAD had retreated to the range 1.4190an on US session yesterday, but rose again to reach 1.4290an the Asian session this morning (13/1). The Canadian dollar is still in a strong sell pressure with respect to impairment where WTI crude oil prices fell to below the level of 30 dollars for the first time in 12 years. On the other hand, investors remain worried about China's stock market crisis and the devaluation of the Renminbi. Chinese trade balance data reported better than expected this morning, but the central bank again lowered the benchmark rate. As a result, the positive trade balance data by commodity markets have not responded to the news lifted.
While uncertainty over Beijing's currency policy is still of concern to the market, David Doyle seed analyst at Macquarie Group Ltd. predicting the Canadian dollar exchange rate which currently stands at around 70 cents US dollar would fall to 59 cents US Dollars in 2016, along with the worsening oil prices.
Doyle, who is a forecaster USD / CAD's best last year according to Bloomberg version also predicts the Canadian central bank will cut its benchmark interest rate to 0:25 per cent on January 20. Furthermore, despite the measures taken, he said, the weakening of the manufacturing sector and the increasingly intense competition in the US market which became its main trading partners will complicate the Canadian economy to move forward.
No comments:
Post a Comment