Tuesday, July 19, 2011

Westpac Recommends Selling USD/CAD - 19 July 2011

The Bank of Canada will release its rate statement today at 5:00 pm (GMT+4). The majority of economists agree that the central bank will hold the borrowing costs at the current 1.00% level. Currency strategists at Westpac note that Canadian economy is currently in a very good shape. 

The specialists reminded about the encouraging June employment report. In addition, Westpac is looking forward to see strong CPI data due on Friday at 3:00 pm (GMT+4).

According to the bank, it’s possible to expect that the BOC will sound more hawkish than at the May meeting, so the analysts advise investors to go long on loonie versus its American counterpart. The recommended strategy is selling USD/CAD at 0.9580 stopping above 0.9700 and targeting 0.9350.

daily usdcad 13-54

–°hart. Daily USD/CAD

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