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10 Mar 2014
Flash: USD/CAD in the mix - RBS
FXStreet (Barcelona) - Paul Robson, Senior FX Strategist at RBS notes that the Bank of Canada made few changes to its March Statement last week.
Key Quotes
“Overall, the Bank retained a cautious tone on both inflation and growth despite stronger growth and inflation numbers of late, giving the statement an overall dovish lean.”
“The phrase about the currency was removed from the January statement and the March vintage made no reference to the CAD. This is where the statement plays most obviously USD/CAD negative.”
“We see spot moving lower to close the gap with rate spreads that has opened up this year. The next key downside level is 1.0907, the 50% retracement of the January 2014 rise which held as support on 19 Feb.”
Key Quotes
“Overall, the Bank retained a cautious tone on both inflation and growth despite stronger growth and inflation numbers of late, giving the statement an overall dovish lean.”
“The phrase about the currency was removed from the January statement and the March vintage made no reference to the CAD. This is where the statement plays most obviously USD/CAD negative.”
“We see spot moving lower to close the gap with rate spreads that has opened up this year. The next key downside level is 1.0907, the 50% retracement of the January 2014 rise which held as support on 19 Feb.”