Canadian dollar outlook from GS. Their 3 month forecast is for USD/CAD to 1.40

  • GS had a projection of 1.42 previously.
  • GS cautious on CAD in the next quarter due, citing the extent of its recent rally

Further out:

  • 6 month to 1.37 (prev. 1.37)
  • 12 month to 1.32 (prior. 1.30)

More from GS :

  • USD/CAD broke below a few key levels last week as a pro-risk rotation across markets supported higher-beta currencies. But we continue to expect any further rally to be short-lived.
  • The Bank of Canada will likely ease policy in the coming months, and Canada still has domestic fragilities-housing market risks, energy sector recession-as well as other less favourable fundamentals than other economies with similar currency drivers (e.g., NOK).
Canadian dollar outlook from GS. Their 3 month forecast is for USD/CAD to 1.40