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On Friday Goldman Sachs recommended...>

DOLLAR-CANADA
DOLLAR-CANADA: On Friday Goldman Sachs recommended a short USDCAD position with
a stop at 1.33 and a target of 1.18.
- Goldman cited 1) Abating headwinds for Canadian growth 2) Little slack and
on-target inflation will keep the BoC hiking 3) Canada's terms of trade have
improved substantially 4) The currency is undervalued and investors are short.
- Although Goldman did highlight that there are a number of risks to the
Canadian economy and the currency. Over the short run, these include
expectations for BoC hikes this year and unresolved NAFTA negotiations. Over the
longer run, elevated house prices and trade competitiveness remain concerns.
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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