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Iranian Deal Key Market Driver, USD/CAD 1.30 Possible

Published 14/07/2015, 14:14
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Brenda Kelly, Head Analyst at London Capital Group, sees upside potential for USD/CAD towards 1.30, as soft fundamental data will likely push the Bank of Canada to ease rates again.

USD/CAD remains a favoured trade

The Dollar trade remains overcrowded, but fundamentals for the CAD, combined with fewer EUR-like headlines and fewer trades makes the pair stand out in the FX space. USD/CAD remains a favoured trade according to Brenda.

More oil supply ahead

The oil market has seen a gap on the technical charts, as Iranian deal continues to drive the market. Iran is expected to flood the oil market with its supply, this remains bearish for prices. So, this supply glut along with the slowdown in the Chinese economy suggests bearish potential ahead for oil prices, but $50/bbl figure will likely act as the support.

Margin cuts troubling oil players

The Oil industry is expected to consolidate, mergers and acquisitions might be seen ahead, with most companies facing troubles due to margin cuts.

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