Expected USD/CAD Range: 1.029 – 1.037
Update: Slightly weaker than expected growth figures in Canada and stronger than expected growth figures in the US have moved the loonie lower against the greenback. We continue to expect more volatility during the day as the markets await any additional color on the timing of “tapering” by the Fed 2 pm.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …
Expected USD/CAD Range: 1.024 – 1.030
Recent Developments: Slightly higher than expected industrial price figures in Canada this morning barely moved the Loonie. The Canadian Dollar remains at one month highs with all eyes now focused on the Fed announcement tomorrow and any clues it might provide as to when the US central bank intends to “taper” its monetary stimulus programs. Also, tomorrow Canadian GDP figures could be a catalyst for a move.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …
Expected USD/CAD Range: 1.026 – 1.031
Recent Developments: The Canadian Dollar should be generally stable and trading at one month highs with a light economic calendar early in the week. The market is focused on the Fed announcement on Wednesday where there could be additional indications as to the timing of the expected “tapering” of monetary stimulus. Also, on Wednesday we will get a monthly reading on Canadian GDP figures. We do not expect the HBC deal announced this morning to have anything other than minor and temporary impact on the loonie.
The Big Picture: The commodity boom has seemingly ended (or is at least sputtering). Relatedly, Chinese and other emerging market economies have …
Mike Moffat argues in an interesting Mclean’s magazine article that the Canadian Dollar is not necessarily overpriced simply because it is trading roughly 20% over prices implied by PPP. Mike argues that transactions costs and the indeterminacy of market prices make PPP irrelevant as a measure of the value of a currency and points out that the Loonie has been trading well above values implied by PPP for almost all of the last decade.
The article is thoughtful but we think it misses an important concept by focusing exclusively on …
