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GS See Broad Sentiment as Bigger Driver for CAD, Rather Than CPI This Week

CAD
  • Ahead of this week's CAD CPI release, Goldman Sachs write that while inflation is likely to be the key factor for policy expectations, CAD is likely to be more primarily driven by the beta function rather than BoC pricing.
  • Resultingly, they write that as long as markets continue to unwind USD strength following strong US data, CAD will probably struggle to outperform. However, the fundamentals continue to argue for a firm USD, leaving CAD to be the biggest beneficiary on crosses.

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