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25 Apr 2016
CAD was the strongest currency yet BoC nonchalant - BBH
Analysts at Brown Brothers Harriman noted that the price action last week saw the Canadian dollar replace the Japanese yen as the strongest currency here in April as well as this year.
Key Quotes:
"Governor Poloz of the Bank of Canada did not express any anxiety toward the Canadian dollar's appreciation in stark contrast to Japanese officials. Better Canadian data, including retail sales, and firmer than expected March CPI readings was a source of resiliency for the currency.
The Canadian dollar traded broadly sideways after recovering from the knee-jerk decline in response to the Doha news. The US dollar traded in a range between CAD1.2600-CAD1.2625 on the downside to CAD1.2760 on the upside. Given the interest rate differential, being long the Canadian dollar during a range affair is not costly."
Key Quotes:
"Governor Poloz of the Bank of Canada did not express any anxiety toward the Canadian dollar's appreciation in stark contrast to Japanese officials. Better Canadian data, including retail sales, and firmer than expected March CPI readings was a source of resiliency for the currency.
The Canadian dollar traded broadly sideways after recovering from the knee-jerk decline in response to the Doha news. The US dollar traded in a range between CAD1.2600-CAD1.2625 on the downside to CAD1.2760 on the upside. Given the interest rate differential, being long the Canadian dollar during a range affair is not costly."