Analysts at Nomura say all the bad news is already priced into the Canadian dollar and it’s time to book profits.
They had earlier recommended betting against the loonie versus a basket of currencies. They warn that the rally in GBP/CAD ‘could be running out of steam’.
The see the potential for further Canadian dollar weakness in the first half of 2014 and will focus on short CAD/MXN to take advantage.
Separately, they expect euro weakness to materialize in the next 3-4 months and will look to EUR/GBP shorts.
Overall, they like scaling into US dollar longs on better data.
