If you’re a Canadian dollar trader have a read through the speech from Bank of Canada Governor Poloz. It’s positively bubbly.
It reminds me of back in late 2008 and early 2009 when RBA deputy Ric Battelino was giving upbeat speeches on Australia while everyone else was hitting the panic button. Anyone who bought AUD/USD at the time (around 65-cents) made a killing. It’s one of the reason I named Battelino one of the best central bankers since the crisis.
With his background and contacts in export development, Poloz has good insight into what companies are thinking. He doesn’t have a long track record as a forecaster but he is placing a large part of his credibility as a forecaster at getting this one right.
If Canada takes off in the way he outlines, we will be looking back at this speech in a few years and wondering why we weren’t loading up on loonies.
