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3 Mar 2015
USD/CAD long bias still favoured - RBS
FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, still supports the idea of playing long USD/CAD.
Key Quotes
"The recently better performing CAD than other energy related currencies, under-performing energy equities, firming USD trend, weak trend in Canadian economic data and the risk that the BoC surprises with a second rate cut in a row on Wednesday support the case for a long USD/CAD position. We expect the RBA to hold steady today, but cut again in April or May."
"While it has essentially made its case to cut, and recent labour and capital expenditure data support its sub-trend GDP growth and subdued inflation outlook, the RBA may wish to at least signal that it would like to see more restraint in the housing market, and can afford to wait a little longer to deliver a second cut this year."
Key Quotes
"The recently better performing CAD than other energy related currencies, under-performing energy equities, firming USD trend, weak trend in Canadian economic data and the risk that the BoC surprises with a second rate cut in a row on Wednesday support the case for a long USD/CAD position. We expect the RBA to hold steady today, but cut again in April or May."
"While it has essentially made its case to cut, and recent labour and capital expenditure data support its sub-trend GDP growth and subdued inflation outlook, the RBA may wish to at least signal that it would like to see more restraint in the housing market, and can afford to wait a little longer to deliver a second cut this year."