Continuum Economics
  • Search
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
  • Calendar
  • Forecasts
  • Events
  • Data
  • Newsletters
  • My Alerts
  • Community
  • Directory
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
    • All
    • Thematic
    • Tactical
    • Asia
    • EMEA
    • Americas
    • Newsletters
    • Freemium
    • Editor's Choice
    • Most Viewed
    • Most Shared
    • Most Liked
  • Calendar
    • Interactive
      • China
      • United States
      • Eurozone
      • United Kingdom
    • Month Ahead
    • Reviews
    • Previews
  • Forecasts
    • Forecasts
    • Key Views
  • Events
    • Media
    • Conference Calls
  • Data
    • Country Insights
    • Shadow Credit Ratings
    • Full CI Data Download
  • Newsletters
  • My Alerts
  • Community
    • FX
    • Fixed Income
    • Macro Strategy
    • Credit Markets
    • Equities
    • Commodities
    • Precious Metals
    • Renewables
  • Directory
  • My Account
  • Notifications Setup
  • Account Details
  • Recent Devices
  • Distribution Lists
  • Shared Free Trials
  • Saved Articles
  • Shared Alerts
  • My Posts
Published: 2024-04-10T14:26:55.000Z

CAD flows: Scope for CAD to weaken further after BoC

byAdrian Schmidt

Senior FX Strategist
2

BoC suggest June rate cut still very likely. Upside risks for USD/CAD

The BoC statement was if anything on the dovish side of expectations, seemingly encouraged by the progress on inflation and suggesting a rate cut in June is likely. This was near fully priced before the US CPI data, but Canadian front end yields have risen with the US, so is currently only around 80% in the market. But the relatively dovish language combined with the rise in US yields leading to spread widening in favour of the USD, plus the weaker equity market after the US CPI data all point to more CAD weakness. As it stands, the CAD has outperformed other currencies post-US CPI, but we may now be due some catch-up, with potential to 1.37, but the highs above 1.38 seen last November should be out of reach near term.

Continue to read the article for free
Login

or

or

Topics
Foreign Exchange
FX DM
Flows
USD/CAD-Commentary

GENERAL

  • Home
  • About Us
  • Our Team
  • Careers

LEGAL

  • Terms and Conditions
  • Privacy Policy
  • Compliance
  • GDPR

GET IN TOUCH

  • Contact Us
Continuum Economics
The Technical Analyst Awards Winner 2021
The Technical Analyst Awards Finalist 2020
image