BofA: We revise USD/CAD forecasts lower for the medium term ...Middle East

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Key Points:

Drivers of CAD Strength: April’s rally was fueled by a BoC rate cut pause, expectations for fiscal expansion, and anticipated investment inflows—factors BofA believes may have driven temporary CAD overvaluation.

Trade Strategy: A 1-year RKO put is favored to cheaply express a bearish view while taking advantage of current skew pricing.

Conclusion:

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This article was written by Adam Button at www.forexlive.com.

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