Canadian Dollar unwind fuelled by slower growth + oil
CAD Update: Slowing growth with added bonus of cheaper oil
- Commodity linked currencies taking a hit from US de escalation of US/Iran tensions. Rhetoric confirmation over the coming weeks will fuel our short bias across energy and CADxxx markets.
- Poloz to confirm cautious outlook following slowing economic growth data (recent contraction in growth *-0.1% for the first time in 8 months) should see flow on effects in rates markets and a subsequent re pricing in CAD
- Larger corrective structure and bull flag has completed with a bottoming out should see an impulsive leg up through to 2017 highs. We would like to see some bullish conviction through 200DMA.
- +5.00% move on the table toward our sellside targets.
- Sensitivity remains to the upside from here. We have added bullish exposure to our macro & directional portfolios.
- Commodity linked currencies taking a hit from US de escalation of US/Iran tensions. Rhetoric confirmation over the coming weeks will fuel our short bias across energy and CADxxx markets.
- Poloz to confirm cautious outlook following slowing economic growth data (recent contraction in growth *-0.1% for the first time in 8 months) should see flow on effects in rates markets and a subsequent re pricing in CAD
- Larger corrective structure and bull flag has completed with a bottoming out should see an impulsive leg up through to 2017 highs. We would like to see some bullish conviction through 200DMA.
- +5.00% move on the table toward our sellside targets.
- Sensitivity remains to the upside from here. We have added bullish exposure to our macro & directional portfolios.