Thursday, November 24, 2011

Scotia Capital, BBH and Merrill Lynch favor loonie


Analysts at Scotia Capital recommend selling EUR/CAD. The specialists note that the single currency will stay under pressure due to the euro zone’s debt crisis, while Canadian dollar will be able to appreciate due to Canada’s top credit rating, stable government, rather strong economy and commodity base.

Strategists at Brown Brothers Harriman share this opinion. In their view, the pair will fall from the current levels in the 1.4000 area to the levels below 1.3800.

Economists at Bank of America Merrill Lynch advise investors to open shorts on AUD/CAD. According to the bank, Australian dollar will suffer more in case of the global growth slowdown. In addition, the Reserve Bank of Australia began easing its policy, while the Bank of Canada remains on hold.

published by FBS Holdings © 2011