USD/CAD set to break above 1.28 targeting the 1.30 level – Rabobank

Economists at Rabobank prepare for more USD upside. Subsequently, the one-month USD/CAD forecast has been raised to 1.30.

Broad-based bullish outlook for greenback to cap downside in USD/CAD

“Our outlook for oil and Canada’s tightening path are likely to remain supportive of CAD going forward, but our USD outlook has become more bullish in light of recent developments in Eastern Europe, and as such, the risk of a near-term sustained break above 1.28 has increased.”

“The pair is unlikely to test the bottom of our expected trading range (1.24) in the coming months.”

“We have revised up our one-month forecast to 1.30 while retaining our six-month forecast of 1.28.”