11 Feb 2015
Oil the major driver for CAD’s weakness – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that CAD is weak with a stronger USD, weaker oil prices & a dovish BoC, the risk is ongoing depreciation but oil remains the core driver.
Key Quotes
“USDCAD is higher, flirting with a break above its seven-session range of 1.2352 to 1.2644.”
“The shift higher has come from falling oil prices, a broadly stronger USD and yesterday’s dovish tone from the BoC’s Wilkins. There are no fundamental releases today.”
“the economic outlook from the perspective of the BoC is one that likely justifies further interest rate cuts. The market is pricing in a 50% chance of a cut at the March 4th meeting.”
“As oil comes under renewed pressure we would expect both the expectations for interest rate cuts in Canada to increase and CAD to weaken.”
Key Quotes
“USDCAD is higher, flirting with a break above its seven-session range of 1.2352 to 1.2644.”
“The shift higher has come from falling oil prices, a broadly stronger USD and yesterday’s dovish tone from the BoC’s Wilkins. There are no fundamental releases today.”
“the economic outlook from the perspective of the BoC is one that likely justifies further interest rate cuts. The market is pricing in a 50% chance of a cut at the March 4th meeting.”
“As oil comes under renewed pressure we would expect both the expectations for interest rate cuts in Canada to increase and CAD to weaken.”