The Canadian dollar has lots to move on: the OPEC meeting, domestic data and the USD rally. What’s next?
Here is their view, courtesy of eFXnews:
Canada September retail sales data yesterday was mixed. Canada front-end rates were slightly lower but continue to price minimal risk of further Bank of Canada easing. Meanwhile, crude prices are choppy amid mixed headlines from the ongoing OPEC meetings.
The WTI front contract managed to end in positive territory, though well-off its early highs. Our oil strategy team expects OPEC will succeed in delivering a production cut at the meetings, but that this will not be sufficient to rebalance the market in 2017.
With WTI prices getting close to the top of their range heading into the meeting, we think risk reward is more attractive for USDCAD longs in the near-term.
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