CAD prospects remain negative – Scotiabank

FXStreet (Edinburgh) - In the opinion of Eric Theoret, Currency Strategist at Scotiabank, the outlook for the Canadian dollar remains on the bearish side for the time being.

Key Quotes

“Oil prices and relative central bank policy remain the key drivers for CAD, with renewed prominence given to the U.S. side of the story amid firming expectations for Fed normalization”.

“The U.S.-Canada 2Y yield spread has shifted in favor of the USD and it is likely to widen as the U.S. 2Y yield climbs back toward its March highs”.

“Lastly, broader developments are a near term downside risk to CAD as we consider Greek risk and its potential impact on financial market volatility”.