Westpac's positions are long, with their original target at 1.3365, but as the bank approached, the target was even higher at a target of 1.3515.
In their decision, they commented that: "Risks against the Canadian dollar are compounding that would push further USD / CAD upward movement, intending to hold our current long positions for at least another week."
According to last Friday's GDP data for Canada, Westpac believes that the Bank of Canada would further mitigate its position on tightening monetary policy. Given the risks, they say that for the moment BOC's moves and a possible further fall in oil prices would also lead to a further depreciation of the Canadian dollar.
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