CAD: Bullish tailwind factors remain - ING

Viraj Patel, Research Analyst at ING, points out that CAD has been the best performing currency in the G10 FX space so far in April – buoyed by a re-pricing of NAFTA risks.

Key Quotes

“While negotiations failed to make much progress at the Americas Summit, both the BoC policy outlook and the loonie’s re-coupling with oil markets amid rising geopolitical tensions have also turned into short-term positives for the currency. USD/CAD’s formation of a head-and-shoulders pattern means that we may see some CAD profit-taking – especially given the low likelihood for a clear hawkish BoC signal at next week’s meeting. We still think the broader trajectory for USD/CAD is a move to 1.20 this year.”