Long USD/CAD on dips to 1.2935, stop 1.2795 – Westpac

Research Team at Westpac, suggests that in the short term they see USD/CAD continue to grind higher.

Key Quotes

“However, crude oil prices have at least recovered a bit of July’s substantial decline, adding to what we view as a fairly upbeat CAD story already. Canadian activity data should start to pick up and money markets show little inclination to price in the risk of another BoC rate cut. We would like to sell into USD/CAD around 1.35 but this is far too high near term. On the week, the 1.32 handle seems more plausible.”