Forex Flash: Can the CAD strength continue? - Nomura

FXstreet.com (Barcelona) - The Canadian dollar has been on a strong rally vs US, up over 5% since June. According to Charles St-Arnaud, strategist at Nomura, the recent appreciation in CAD is due to "improving US data and a reduction in global uncertainty, a repricing of rates expectations from cuts to small hikes, higher commodity prices, mainly in the form of a catch-up in prices received by Canadian producers and continued inflows into Canadian assets, both portfolio and M&A type of flows." Charles St-Arnaud thinks the repricing of incorporate recent economic developments is completed, ergo, believes that USDCAD losses can be capped by 0.98. "A sustainable decline in USDCAD beyond 0.98 will require a broad improvement in the global economic outlook, especially in the US and the eurozone."