USD/CAD: bullish bias on US yields for 2016 - Scotiabank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 31, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Analysts at Scotiabank noted a supporting factor behind the greenback and offered insight to USD/CAD.

    Key Quotes:

    "We are bullish on the broader outlook for the USD; rising short-term interest rates which are driving more supportive yield differentials against the major currencies remain a strong source of support for the USD."

    "Domestically, policy expectations remain dovish as we look to OIS and pricing of a roughly 40% chance of a 25bpt rate cut over the next 12 months.

    Stability has been observed over the past two weeks, with relative policy risks centered on the U.S. outlook and the ongoing shift toward a pricing of greater Fed tightening. We maintain a fundamentally-driven bearish outlook on CAD."
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