CAD: Most undervalued dollar bloc currency - Westpac
|Richard Franulovich, Research Analyst at Westpac, points out that CAD is the most undervalued dollar bloc currency and as AUD, NZD and CAD have all been trading weaker than high frequency measures of their terms of trade would dictate.
Key Quotes
“CAD offers the most compelling value from a commodity valuation standpoint. Energy prices have eased about 10% from their highs but even so CAD has materially undershot this year’s run-up in crude oil. NAFTA disruption risk is the obvious CAD headwind but against that the BoC is much closer to lifting rates than either the RBA or the RBNZ.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.