USD/CAD: ABN-AMRO recommends selling at around 1.36

ABN-AMRO is bearish on the USD/CAD:

"The Canadian dollar has appreciated sharply (over 1%) against the dollar to $1.3280, following statements from BoC governor Mr. Poloz, who told MPs that the best posture is to wait to see what happens over the next 18 months. This supported the CAD because the markets believed that the BoC had finished its monetary easing cycle. However, this increase reversed when governor Poloz clarified that the 18 months involved the time needed for production capacities to be fully utilised and not the duration of monetary policy.

We expect the Canadian dollar to rise against the USD with 1.27 in sight in 2017 due to our expectation of rising oil prices. CAD should also benefit from reduced expectations of a rate cut next year.

We favour selling the USD/CAD around 1.36." says ABN-AMRO.