FX Daily: Risk Assets Struggle To Refloat

CAD: Looking for opportunities

We like recovery trades against the dollar in 2021. European FX – certainly at the moment – does not look the vehicle to express that view. Better placed may well be the North American currencies of Canada's dollar and the Mexican peso. These economies stand to benefit from the US consumer boom (e.g. remittances back into Mexico should be supported) and the Bank of Canada may be one of the first G10 central banks to taper asset purchases. We would therefore be looking for this USD/CAD bounce to be stalling in the 1.2650/2750 area before the pair breaks back under 1.25.

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Disclosure: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...

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