5 Nov 2013
Flash: CAD posed to suffer from oil concerns – Scotiabank
FXstreet.com (Edinburgh) -Strategist Camilla Sutton at Scotiabank emphasized that wider Brent-WCD spread would hurt the Canadian Dollar.
Key quotes
“The recent 15% fall in WTI oil, from September to November is a concern, but even more so is the more exaggerated drop in Western Cdn Select (WCS) priced oil, all while Brent has been relatively stable”.
“The rising Brent-WCS spread is negative for the Canadian economic backdrop and the CAD if it is sustained”.
“Technical studies all suggest that USD/CAD is poised for upside. The last two sessions have been dojis, which suggest some indecision in the CAD outlook”.
Key quotes
“The recent 15% fall in WTI oil, from September to November is a concern, but even more so is the more exaggerated drop in Western Cdn Select (WCS) priced oil, all while Brent has been relatively stable”.
“The rising Brent-WCS spread is negative for the Canadian economic backdrop and the CAD if it is sustained”.
“Technical studies all suggest that USD/CAD is poised for upside. The last two sessions have been dojis, which suggest some indecision in the CAD outlook”.