On Tuesday Barclays recommended "shorting.....>

FOREX: On Tuesday Barclays recommended "shorting the CAD vs. the USD and NOK

(equal weighted) as a spot FX basket. The trade benefits from the more

unfavorable trend in relative productivity for Canada versus key trading

partners, as well as the more limited gains from a turn higher in global oil

prices due to potential transportation bottlenecks for Canadian oil."

- Going further they noted that "although the CAD is low relative to past

cycles, structural factors have also been to blame. Slowing relative

productivity and depressed terms of trade have kept the REER low. We find that

supply-side constraints have exacerbated the move lower in Canada's terms of

trade, reducing CAD's sensitivity to global oil prices. With these structural

headwinds likely to persist, we see limited upside for the CAD and Canadian real

rates in the medium term. This is likely to assist flattening of the yield curve

as the BoC tightens rates towards neutral."