CAD seasonality analysis: Spring into action, fall back Into into line


What’s the seasonal pattern in the loonie

Bank of America Global Research discusses CAD seasonality patterns.

CAD
seasonality is strongest from April through June and then picks up
again in November. The tendency is for CAD to moderately appreciate in
the spring and moderately depreciate in the fall,
” BofA notes. 

“This is mostly a reflection of broader USD seasonality but also reflects seasonality seen in risk appetite and oil prices. The latter is important to CAD as Canada is a key oil producer, with higher oil boosting the countrys
terms of trade, export revenues and hence the trade balance. We find
results intuitive as these are three of the most important drivers of
the loonie historically,” BofA adds.

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