4 Dec 2014
Credit Agricole: It’s not just an Oil story for CAD – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes, Credit Agricole views the Oil links for CAD to be a bit exaggerated as the contribution of oil to Canada’s GDP is only 5%.
Key Quotes
“For CAD, we think the combination of a more upbeat BoC and stable oil prices suggest scope for mild rally over the coming weeks.”
“Indeed, we think the “oil” links to CAD are a bit exaggerated given Canada’s oil exports account for only 5% of GDP. Oil related investment in Canada’s also accounts for a little less than 5% of GDP. In the G10 we think NOK is a much better oil proxy given oil exports account for a much larger share of GDP (18%). As such, we look for tactical decline in USD/CAD over the coming weeks and target a move back to 1.1222.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“For CAD, we think the combination of a more upbeat BoC and stable oil prices suggest scope for mild rally over the coming weeks.”
“Indeed, we think the “oil” links to CAD are a bit exaggerated given Canada’s oil exports account for only 5% of GDP. Oil related investment in Canada’s also accounts for a little less than 5% of GDP. In the G10 we think NOK is a much better oil proxy given oil exports account for a much larger share of GDP (18%). As such, we look for tactical decline in USD/CAD over the coming weeks and target a move back to 1.1222.”
This content has been provided under specific arrangement with eFXnews.