Credit Agricole discussed its outlook for CAD in a recent note to clients, seeing scope for further correction against USD.
Credit Agricole explains:
Even though sentiment may remain in favour of buying the CAD against lower yields such as the EUR, CHF and JPY, positioning as it stands still argues for some caution. Even though the CAD is not yet trading in strongly overbought territory, corrective downside risk should be treated as high.
Having said that, we remain of the view that the currency should not be chased higher with underperformance against most of its commodity bloc peers likely to remain intact too.
Credit Agricole explains:
Even though sentiment may remain in favour of buying the CAD against lower yields such as the EUR, CHF and JPY, positioning as it stands still argues for some caution. Even though the CAD is not yet trading in strongly overbought territory, corrective downside risk should be treated as high.
Having said that, we remain of the view that the currency should not be chased higher with underperformance against most of its commodity bloc peers likely to remain intact too.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.