12 Jan 2015
USD/CAD making fresh 5.5 year highs - Scotiabank
FXStreet (Guatemala) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank noted the weakness in the CAD.
Key Quotes:
"Oil prices continue to weigh on the Canadian economic backdrop and this combined with a broadly stronger USD have CAD trending lower. However not all asset classes are supporting a lower CAD".
"The spread between U.S. and Canadian two year yields has dipped lower and options markets are no longer pricing to protect against USD upside risk".
"We see the core driver for CAD in the near‐term as developments with oil prices and expect CAD to reach fresh lows this week".
"USD/CAD short‐term technicals: bullish—studies continue to warn of upside risk, and the upward trend is firm".
"We are biased to be long USD/CAD".
Key Quotes:
"Oil prices continue to weigh on the Canadian economic backdrop and this combined with a broadly stronger USD have CAD trending lower. However not all asset classes are supporting a lower CAD".
"The spread between U.S. and Canadian two year yields has dipped lower and options markets are no longer pricing to protect against USD upside risk".
"We see the core driver for CAD in the near‐term as developments with oil prices and expect CAD to reach fresh lows this week".
"USD/CAD short‐term technicals: bullish—studies continue to warn of upside risk, and the upward trend is firm".
"We are biased to be long USD/CAD".