14 Jul 2014
CAD worst performer over 12 months- Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist, at Rabobank explained that towards the end of June the market started to rethink its bearish CAD view.
Key Quotes:
“Canadian CPI inflation headed higher and this triggered a debate over whether the BoC will be forced to drop its dovish tone. Countering this view, last week’s BoC’s Outlook Survey suggested the existence of downside risks on inflation”.
“Since this will likely be used by the BoC as reason to maintain the dovish outlook it this has led to a retreat by the CAD vs. the USD. That said, we would look to sell USD/CAD on any move towards 1.08”.
“The CAD remains the worst performing developed world currency on a 12 mth view and this should have a supportive influence on inflation and BoC policy expectations in the coming months”.
Key Quotes:
“Canadian CPI inflation headed higher and this triggered a debate over whether the BoC will be forced to drop its dovish tone. Countering this view, last week’s BoC’s Outlook Survey suggested the existence of downside risks on inflation”.
“Since this will likely be used by the BoC as reason to maintain the dovish outlook it this has led to a retreat by the CAD vs. the USD. That said, we would look to sell USD/CAD on any move towards 1.08”.
“The CAD remains the worst performing developed world currency on a 12 mth view and this should have a supportive influence on inflation and BoC policy expectations in the coming months”.