Strategists at TD Securities remarked the relevance of the crude oil dynamics and the US-CAD spread as the main drivers for the Canadian dollar.
Key Quotes
“The combination of wider spreads and oil prices slipping back under $50/bbl is kryptonite for theCAD”.
“Wider short-term spreads are supportive of the USD moving towards 1.30 in the near-term, we think; allowing for lower oil prices and assuming steady spreads from last night’s close, our 5-year spread and terms of trade FV model suggests USDCAD FV may be nearer the low/mid 1.27s this morning.
Key Quotes
“The combination of wider spreads and oil prices slipping back under $50/bbl is kryptonite for theCAD”.
“Wider short-term spreads are supportive of the USD moving towards 1.30 in the near-term, we think; allowing for lower oil prices and assuming steady spreads from last night’s close, our 5-year spread and terms of trade FV model suggests USDCAD FV may be nearer the low/mid 1.27s this morning.
