Citibank USD/CAD forecast: 1.42 in 0-3 months

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Citi bank predict that continuing oil weakness may drive USD/CAD to 1.42 in 0-3 months.

Their words:

“Since petroleum products are Canada’s major export, the persistent oil weakness may dampen Canada’s export income. This will likely be CAD-negative.
Besides, Citi’s Canada Economic Surprise Index plunged to -71.5 recently, the worst among major currencies, reflecting that economic data in Canada continues to trail market expectations. For instance, Canada’s Core CPI growth (MoM) moderated from +0.3% to -0.3% in Nov. GDP growth (YoY) fell from +0.1% to -0.2% in Oct.
Technical indicators suggest USD/CAD may rise toward 1.4001-1.4200 upon consolidation, with support at 1.3721”

USD/CAD weekly chart

USDCAD-Weekly

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