FXstreet.com (Barcelona) - The Capital Economics team in Canada have been paying special attention to the fortunes of the Canadian dollar.
They note that the recent surge in the currency coincides with the general rally in equity and commodity markets. They feel that "the economic fundamentals that would typically justify this movement, however are lacking. The latest survey evidence suggests that the global economic recovery has lost even more momentum, which prompted a drop back in crude oil prices last week.”
Domestically, they believe that the Canadian housing market may have entered what could be a quite severe correction, effecting both sales and prices.
They note that the recent surge in the currency coincides with the general rally in equity and commodity markets. They feel that "the economic fundamentals that would typically justify this movement, however are lacking. The latest survey evidence suggests that the global economic recovery has lost even more momentum, which prompted a drop back in crude oil prices last week.”
Domestically, they believe that the Canadian housing market may have entered what could be a quite severe correction, effecting both sales and prices.
