USD/CAD has traded cleanly through the 1.2450 target that analysts at Credit Suisse set on 29 September. They now look for the pair to trade to 1.2200 in the next three months.

Loonie still attractive, at the right level

“We remain bullish CAD and now move our three-months target lower from 1.2450 to 1.2200. The core driver of our change in view is, unsurprisingly, the ongoing surge in energy prices, and the numerous ways in which it benefits the CAD outlook, beyond the simple export revenue math.”

“In USD/CAD, we would look to fade rallies to the 200-day moving average of 1.2510, with a 1.2200 target and a stop loss at 1.2650.”