Forex Flash: CAD correlation to oil and stocks rises – TD Securities

FXstreet.com (Barcelona) - TD Securities analysts noticed that CAD correlations with crude oil and stocks has strengthened (CAD/S&P 500 correlation nearing +48% in our rolling 22-day study) while correlation with (less CAD-supportive) short-term Canada-US interest rate spreads has weakened.

“The market struggled to push higher through the 1.0350 earlier this month, opening the door for a modest consolidation/correction in funds after the strong rally from the par zone”, wrote TD Securities analyst Shaun Osborne and Greg Moore, adding that while there is not clarity on Cyprus, modest USD/CAD dips are a buy to the 1.02 area in the near-term.