Since Fed Chairman Bernanke highlighted the prospects of Fed “tapering” during his testimony on May 22 commodity currencies accept performed poorly. The notable exception has been the CAD which has eked out gains over recent weeks.
Like GBP, the CAD has been helped past times relatively positive information releases, which inward plough accept prompted growing expectations of policy rates hikes from the Bank of Canada.
Market positioning inward CAD remains relatively short, suggesting to a greater extent than ambit for gains against other commodity currencies over coming weeks. Meanwhile, information this calendar week including May CPI as well as Apr retail sales volition hold out scrutinized for clues every bit to the side past times side deed from the BoC as well as inward plough whether gains inward CAD are justified.
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