20 Jul 2015
CAD positioning is now the most net short in over a year – Nomura
FXStreet (Mumbai) - The FX strategy team at Nomura notes that the net short positions in the Canadian dollar now stands at more than one year high after the Bank of Canada announced a rate cut last week.
Key Quotes
“CAD shorts increased sharply, with specs selling $0.7bn of CAD the week ended Tuesday and a further $1.6bn since.”
“This is sensible given the large USDCAD appreciation on the week, particularly following the cut by the BOC, which Nomura had expected (see Bank of Canada cuts as expected, 15 July 2015) but caught the market by surprise.”
Key Quotes
“CAD shorts increased sharply, with specs selling $0.7bn of CAD the week ended Tuesday and a further $1.6bn since.”
“This is sensible given the large USDCAD appreciation on the week, particularly following the cut by the BOC, which Nomura had expected (see Bank of Canada cuts as expected, 15 July 2015) but caught the market by surprise.”