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3 Apr 2014
USD/CAD rally to extend in Q2 2014 - JPMorgan
FXStreet (Bali) - John Normand, FX Strategist at JP Morgan Securities, expects USD/CAD to move even higher in Q2.
Key Quotes
"USD/CAD is expected to move higher for all the ordinary reasons (Canada rates lag US ones, poor external position) rather than the dramatic ones (housing crisis, US energy independence displacing Canadian production)."
"The main concern in April is that the same polar vortex which distorted US data in Q1 also distorted Canadian ones, and that the payback may be mistake for underlying momentum in the domestic economy. So we are neutral on this pair but short vol on a cross which is too elevated (GBP/CAD)."
Key Quotes
"USD/CAD is expected to move higher for all the ordinary reasons (Canada rates lag US ones, poor external position) rather than the dramatic ones (housing crisis, US energy independence displacing Canadian production)."
"The main concern in April is that the same polar vortex which distorted US data in Q1 also distorted Canadian ones, and that the payback may be mistake for underlying momentum in the domestic economy. So we are neutral on this pair but short vol on a cross which is too elevated (GBP/CAD)."