7 Aug 2013
Flash: Weaker data out of Canada hurt the CAD - UBS
FXstreet.com (Córdoba) - The USD weakened versus most competitors on Wednesday, with the main exception of the CAD. The UBS analyst team commented on the matter.
Key Quotes
“Wednesday's publication of lower building permits and the Ivey PMI hurt the CAD”.
“After last week's RBC manufacturing PMI stagnated above 50, Wednesday's Ivey PMI has fallen below 50. It has to be mentioned that the Ivey is highly volatile. Encouraging in the Ivey was that the employment component rose, which bodes well for the important employment data this Friday”.
“We remain overweight the CAD, as we expect the strength of the US economy to support also the Canadian recovery”.
Key Quotes
“Wednesday's publication of lower building permits and the Ivey PMI hurt the CAD”.
“After last week's RBC manufacturing PMI stagnated above 50, Wednesday's Ivey PMI has fallen below 50. It has to be mentioned that the Ivey is highly volatile. Encouraging in the Ivey was that the employment component rose, which bodes well for the important employment data this Friday”.
“We remain overweight the CAD, as we expect the strength of the US economy to support also the Canadian recovery”.