The key US data suggest CAD’s external backdrop remains supportive, as do commodity prices, and fears on Canadian housing are likely overdone. We now exit our long-held bullish AUD/CAD and NZD/CAD Blueprint views – the former being a little lower than when the Blueprint was published, but the latter being quite a bit higher. We will now go long CAD/JPY on a break of 99 (above the year’s highs at 98.88), or a pull-back to 96.50, looking for at least a 6 big figure rally with a 2 big-figure trailing stop.
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Deutsche Bank