#USDCAD @ 1.36214 lower later in H2 with Loonie underperforming non-USD G10 FX – MUFG
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The Canadian Dollar was the third best performing G10 currency in February. Underperformance should emerge later in the year, economists at MUFG Bank report.
“Stronger domestic data but weaker inflation will be enough to keep the BoC on the sidelines and hence USD/CAD is likely to be more driven by external factors for now and with 2yr UST bond yields at cyclical highs and Fed rhetoric so hawkish, we see upside USD/CAD risks over the short-term before CAD can recover.”
“Slower US growth will likely see USD/CAD lower later in H2 with CAD underperforming non-USD G10 FX.”
“USD/CAD – Q1 2023 1.3600 Q2 2023 1.3500 Q3 2023 1.3400 Q4 2023 1.3200.”
“EUR/CAD – Q1 2023 1.4280 Q2 2023 1.4580 Q3 2023 1.4740 Q4 2023 1.4780.”
“CAD/JPY – Q1 2023 100.00 Q2 2023 98.520 Q3 2023 97.010 Q4 2023 96.210.”
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