23 Jun 2014
USD/CAD: the air gets thin for BoC dovishness - UBS
FXStreet (Córdoba) - The UBS analyst team commented that the tide is turning for a rebound of the Canadian dollar, and they expect the USD/CAD to fall in the coming months.
Key Quotes
“Investors in the Canadian Dollar had a hard time over the last 12 months, when the CAD lost more than 10% against the USD, due to floods in Canada, rising US yields and a dovish shift of the Bank of Canada given a sharp drop in inflation in 2013”.
“We argued recently that the tide is turning for a rebound of the CAD”.
“Friday's strong inflation and retail sales confirm this and pressure the BoC to drop the dovish bias at their July meeting”.
“The CAD is likely to rebound further in coming months”.
Key Quotes
“Investors in the Canadian Dollar had a hard time over the last 12 months, when the CAD lost more than 10% against the USD, due to floods in Canada, rising US yields and a dovish shift of the Bank of Canada given a sharp drop in inflation in 2013”.
“We argued recently that the tide is turning for a rebound of the CAD”.
“Friday's strong inflation and retail sales confirm this and pressure the BoC to drop the dovish bias at their July meeting”.
“The CAD is likely to rebound further in coming months”.