EUR/USD: fundamental factors
Canadian dollar fell to the 1-year minimum this month – the pair USD/CAD reached on October 4 maximum at 1.0657. Loonie weakened on the concerns about the world’s economic slowdown.
Analysts at Wells Fargo claim, however, that once global volatility subsides, Canada’s currency will have good chances for rebound. The bunk of Canada is still less likely to cut rates in the coming months than many other central banks. The BOC could even begin tightening policy by middle of 2012.
As a result, though the near-term outlook for loonie is bearish, it’s likely to recover the next year. According to the bunk, in 2012 the pair USD/CAD will return below the parity on a sustained basis.
Canadian dollar fell to the 1-year minimum this month – the pair USD/CAD reached on October 4 maximum at 1.0657. Loonie weakened on the concerns about the world’s economic slowdown.
Analysts at Wells Fargo claim, however, that once global volatility subsides, Canada’s currency will have good chances for rebound. The bunk of Canada is still less likely to cut rates in the coming months than many other central banks. The BOC could even begin tightening policy by middle of 2012.
As a result, though the near-term outlook for loonie is bearish, it’s likely to recover the next year. According to the bunk, in 2012 the pair USD/CAD will return below the parity on a sustained basis.


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