Commerzbank: USD/CAD Surge Exaggerated, Says Analyst
Commerzbank strategist Michael Pfister argues that the recent rally in USD/CAD above 1.42 is overdone, citing falling oil prices and rising Fed hike expectations as temporary pressures on the Canadian dollar.
USDCAD
Commerzbank analyst Michael Pfister suggests that the sharp rise in USD/CAD is exaggerated. The pair moved from below 1.36 to above 1.42, driven by declining oil prices and growing expectations of Federal Reserve rate hikes, which put pressure on the Canadian dollar.
Pfister's comment implies that the current level may not be sustainable, though he does not provide a specific target. The assessment is based on the view that market reactions have overstated the impact of these factors on the loonie.
Source: FXStreet Forex News