7 Feb 2014
Flash: USD/CAD topped out at 1.12 - UBS
FXStreet (Córdoba) - The UBS analyst team comments that fist positive signs in Canada should reduce the BoC worries and dampen rate cut expectations.
Key Quotes
"After the recent rally, USD/CAD topped out at 1.12 and has stabilized between 1.10-1.11".
"After a weather related strong drop in December, the IVEY PMI rebounded in January, giving a first positive sign".
"Also reaccelerating producer prices are a good sign for consumer prices going forward. This should reduce the BoC worries and dampen rate cut expectations".
"Those are first positive signs, but we continue to advise staying on the sideline for now and enter CAD-long trades only later in the year".
Key Quotes
"After the recent rally, USD/CAD topped out at 1.12 and has stabilized between 1.10-1.11".
"After a weather related strong drop in December, the IVEY PMI rebounded in January, giving a first positive sign".
"Also reaccelerating producer prices are a good sign for consumer prices going forward. This should reduce the BoC worries and dampen rate cut expectations".
"Those are first positive signs, but we continue to advise staying on the sideline for now and enter CAD-long trades only later in the year".