Buy USD/CAD on any pullback towards 1.308 - Natixis

Analysts at Natixis note that the Canadian dollar benefited from the rebound in the price of Brent, also from the sharp improvement in job creations in Canada in December, notably the gains in full-time work.

Key Quotes

“Similarly, the Ivey PMI improved to 60.8 in December from 56.8 in November. As a result, the USD/CAD pulled back towards 1.32. As with the Australian and New Zealand dollar, we remain cautious on the Canadian dollar given the expected rebound of the greenback and the risk of negative comments by Donald Trump concerning the North American Free Trade Agreement (NAFTA). However, we would be buyers of the USD/CAD only on a pullback to around 1.308 to play a rebound towards 1.35.”