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BMO Model Provides Short USD/CAD Signal

CAD

BMO note that their “rotating financial factor model for USD/CAD entered a new short USD/CAD signal on today's close at a spot reference of C$1.2745. The model's fair value ended the day at C$1.2664. The position will remain in place until spot drops below fair value (or fair value rises above spot). Oil, the 10-Year swap spread and the 5-Year interest rate differential are the model's three active factors. Rising oil and narrowing spreads exerted downward pressure on fair value, but the 5-Year interest rate differential had a big move in the USD's favour today and that seemed to influence the spot market more than oil and risk appetite.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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