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Forex pairs in this Article » EUR/USD
FXstreet.com (Bali) - CAD weakness is justified on spreads as fundamentals, notes Shaun Osborne, Chief FX Strategist at TD Securities.

Key Quotes

"New cycle lows for CAD reflect less-supportive rate spreads versus the USD, even if the tracking is imprecise and spot/spread correlations are fairly loose currently."

"Spreads are moving against the CAD, with the real squeeze coming from higher US yields rather than softer Canadian rates. A further shift in BoC policy bias risks pushing the CAD lower still."

"Fundamentally, CAD weakness is justified, based on spreads and terms of trade; there is no obvious misalignment in the FX rate that suggests a sharp rebound is imminent."


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