26 Mar 2014
The Loonie has little hope - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that there is little justification for a sustained CAD recovery at the moment.
Key Quotes:
“The BoC’s bias remains geared towards an accommodative policy stance, reflecting the weak turn in the domestic data—low inflation, sluggish growth and the loss of relative competitiveness”.
“Meanwhile, the US data run may be starting to shrug off the disappointing trend in outcomes relative to expectations seen since the start of the year while the Fed remains in taper mode. US-Canada spreads remain in USD-supportive territory , with the 5-year yield differential back to par (or a little above) - the most USD-supportive levels seen since 2009”.
Key Quotes:
“The BoC’s bias remains geared towards an accommodative policy stance, reflecting the weak turn in the domestic data—low inflation, sluggish growth and the loss of relative competitiveness”.
“Meanwhile, the US data run may be starting to shrug off the disappointing trend in outcomes relative to expectations seen since the start of the year while the Fed remains in taper mode. US-Canada spreads remain in USD-supportive territory , with the 5-year yield differential back to par (or a little above) - the most USD-supportive levels seen since 2009”.