CAD: Obvious beneficiary from Trump’s pro-growth reflation agenda - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that the CAD stands to be one of the more obvious beneficiaries from Trump’s progrowth reflation agenda, embraced with open arms by markets, but against that his protectionist agenda threatens to offset much of the upside for Canada.

Key Quotes

“Near term risks to USD/CAD remain skewed higher but we would not get too carried away.”

“Easier local financial conditions (lower CAD, lower rates) along with Trudeau’s fiscal stimulus package should help tip the risks in favour of stronger Canadian data.”

“As the slide over shows, the complexion of Canadian data has been improving, albeit from a very low base.”

“We draw a line in the sand at 1.3600. Until then we continue to think the positives for Canada are heavily underpriced.”