usdcad update for )E I
three points
commodity px are much higher - bullish cad
CAD 2y swap rate higher (not lower as i had expected) vs US rates compared to 2mths ago bullish cad
canada still has v vulnerable housing sector and several high profile clients have been exiting canadian risk (pimco ed devlin in ft last week) but nevertheless given 1 and 2 above im less bearish cad vs usd than 2mths ago when JE entered the trade.
so given 1 and 2 im surprised usdcad hasnt moved lower - i dont have a view on usdcad here and therefore dont like the trade anymore
Nav
Nav Gupta
Managing Director
Deutsche Bank AG, Filiale London Deutsche Asset & wealth Management 105/108 Old Broad St (Pinners Hall), EC2N lEN London, United Kingdom
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