Economists at Credit Suisse nudge their USD/CAD target range slightly higher to 1.3225-1.3900, even as they see mild potential for CAD-supportive developments from today’s Bank of Canada rate decision.

BoC to provide some marginal support for CAD

“We tempered our bearishness on CAD setting a 1.3000-1.3650 USD/CAD target range. With the top end of our target range breached, we raise our target range slightly to 1.3225-1.3900, with the extremes of the range consistent with the highs and the lows of Q4 thus far.” 

“Our underlying assumptions is that CAD will remain more influenced by broader risk sentiment than by domestic factors, even if we see potential for the BoC to provide some marginal support for CAD today. A dovish surprise by the BoC would likely bring us to revisit our USD/CAD target further to the upside.” 

See – BoC Preview: Forecasts from nine major banks, very close call