USD/CAD downside appears limited – Rabobank

In view of Strategist Christian Lawrence at Rabobank, the pair’s downside looks limited in the near term.

Key Quotes

“We think further downside for USD/CAD could prove limited as we see further upside for oil this year as somewhat capped”.

“We also see a significant risk of the Fed raising rates at least once this year (our base case remains two rate hikes) which would provide a boost to USD/CAD from an interest rate differential as well, given that we think that the Bank of Canada will remain on the sidelines this year”.