15 Jan 2014
Flash: USD/CAD for a break higher? - Societe Generale
FXstreet.com (Guatemala) - Sebastien Galy, Senior FX Strategist at Societe Generale noted strikes at 1.1000 for USD/CAD.
Key Quotes:
"The next possibility of a widening of policy differentials comes on 22 January, when the Bank of Canada may well signal a future rate cut as it tries to prod USD/CAD higher. A heavy layer of strikes at 1.10 should help USD/CAD to break higher."
"Canada, like other commodity producers, is driving its currency lower to help rebalance its economy after over a decade of high FX levels and losses in productivity relative to the US."
Key Quotes:
"The next possibility of a widening of policy differentials comes on 22 January, when the Bank of Canada may well signal a future rate cut as it tries to prod USD/CAD higher. A heavy layer of strikes at 1.10 should help USD/CAD to break higher."
"Canada, like other commodity producers, is driving its currency lower to help rebalance its economy after over a decade of high FX levels and losses in productivity relative to the US."