A bull on the loonie stands up

|By:, SA News Editor

"The market is pricing in an overly benign outlook for Canadian short-term interest rates," says BCA Research, sounding a contrary bullish call on the loonie (FXC), which has been a one-way bet (short) for about a year now. "Canada has a much smaller output gap than the U.S. Therefore, Canada is likely to hit capacity constraints sooner ... the BoC will need to normalize policy ahead of the Fed."

Previously: Poloz comments send loonie back to 5-year low