USD/CAD could rise close to the 1.29 level – Mizuho

USD/CAD hit a low of 1.2457 on January 20 and a high of 1.2809 on January 6. The pair is expected to move in a range between 1.24-1.30 in February, analysts at Mizuho Bank report.

Oil set to move between the upper-$70 and upper-$80

“The US dollar will be bought if expectations for US rate hikes rise and some comments prompt speculation that rates will be lifted at faster pace. The greenback might also be supported by the results of economic indicators and the USD/CAD would well rise close to around 1.29 in February.”

“WTI prices look set to continue climbing as supply falls on the deteriorating situation in Ukraine and political uncertainty in the Middle East. Even if geopolitical risk eases, OPEC Plus output adjustments will stop crude oil prices falling sharply, with prices set to move between the upper-$70-upper-$80/barrel range in February.”

“The US dollar is likely to remain bullish on the whole this month, but the Canadian dollar will be supported by high crude oil prices, so the USD/CAD pair will probably move between 1.24-1.30 this month.”