CAD: Consolidation likely but still some downside left - ING
According to analysts at ING, while the Canada’s Aug GDP data disappointed, the beat in the Oct jobs figures helped buffer some of the CAD downside.
“We still think there is further room for CAD to move lower as markets fully price out scope for a Dec BoC rate hike (currently a 25% probability is priced in). Cautious policy talk from Governor Poloz this week (speech on Wed) might be the final blow here.”
“We have been calling for a retrace up to the OECD PPP fair value estimate of 1.27. Now we're here, we expect $/CAD now trades within the broad 1.25-1.30 range - with the risks skewed to the top-end of this range.”