Back
8 Jan 2014
Flash: CAD as an oil proxy is 2 years away - Societe Generale
FXstreet.com (Guatemala) - Sebastien Galy, Senior FX Strategist at Societe Generale feels that CAD is two years away from being an oil proxy.
Key Quotes
“CAD has long been traded as a proxy for oil and energy and been expensive from a long-term point of view.”
“As long as the global economy remains below its output gap, the attempt to close the very large gap between Canadian and US productivity should leave internal demand subdued and core inflation low.”
“Demand from the US and the rest of the world as well as Fed policy will largely determine the path of the CAD.”
Key Quotes
“CAD has long been traded as a proxy for oil and energy and been expensive from a long-term point of view.”
“As long as the global economy remains below its output gap, the attempt to close the very large gap between Canadian and US productivity should leave internal demand subdued and core inflation low.”
“Demand from the US and the rest of the world as well as Fed policy will largely determine the path of the CAD.”