5 Aug 2015
USD/CAD poised for further upside – Societe Generale
FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, expects the pair to inch higher in the upcoming weeks.
Key Quotes
“There are many EM investors who are itching to buy into any weakness inspired by
a hike, on the ground that this will be a very modest cycle, for example”.
“I’m not quite that sanguine. For now, I note that the 2yr Euro/US rate spread is back at levels seen when EUR/USD was at its lows, though it’s only fair to note that the correlation between relative 2yr rates this year has been poor and less good than that with the 10yr yield spreads”.
“The correlation between short-term rate differentials and USD/CAD on the other hand, encourages me to stick long, as 1.32 breaks”.
Key Quotes
“There are many EM investors who are itching to buy into any weakness inspired by
a hike, on the ground that this will be a very modest cycle, for example”.
“I’m not quite that sanguine. For now, I note that the 2yr Euro/US rate spread is back at levels seen when EUR/USD was at its lows, though it’s only fair to note that the correlation between relative 2yr rates this year has been poor and less good than that with the 10yr yield spreads”.
“The correlation between short-term rate differentials and USD/CAD on the other hand, encourages me to stick long, as 1.32 breaks”.