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Westpac recommended selling EUR/CAD at........>

FOREX: Westpac recommended selling EUR/CAD at C$1.5180 on Tuesday, with a target
of C$1.4700 & a stop at C$1.5300.
- Westpac reason that "recent Eurozone data underscored weakness in growth and a
lack of inflation pressures in front of 24th January ECB meeting with only final
CPI data for Dec. and ZEW surveys over the coming week. Civil unrest in France,
Italy's banking sector refinancing and the resurfacing political and fiscal
issues in Greece are likely to weigh on Eurozone sentiment in the absence of key
data and CB silence in front of the ECB meeting. Growth affirming policy
measures from China and a more patient and flexible Fed should underwrite higher
beta growth currencies near term. Doubts about the BoC's commitment to further
policy normalisation continue to percolate but only a very bare +12bp in BoC
hikes are now priced over their next six meetings to September 2019, a material
decline from two months ago when rates markets discounted +70bp in BoC hikes
over the same period. Mandated Alberta production cuts and OPEC supply
agreements have helped place a floor on energy markets and the discount on
Canada's Western Select."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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