USD/CAD: Credit Agricole says BoC will not do anything, dips below 1.30 are buying opportunities

Credit Agricole has a bias towards buying the USD/CAD:

"GDP growth declined by 1.6% in Q2, confirming a significant slowdown, even if we put aside the Fort McMurrray fires that disrupted oil production. Without new economic projections, we do not believe that the BoC will change its monetary policy.

The BoC will wait for the month of October to possibly consider a change in monetary policy or forward guidance if the statistics continue to disappoint.

On the forex, short-term USD/CAD volatility is mainly driven by external factors. And with the price of oil that will probably remain under $50, we believe that dips of the USD/CAD below 1.30 are buying opportunities." says Credit Agricole bank.