The Loonie is bid despite NAFTA headlines - Scotiabank

Despite the disappointing NAFTA headlines, the CAD has picked up a bid today so far and analysts at Scotiabank are bullish for the Loonie medium term.

Key Quotes:

"Media are reporting that a ‘deal in principle’ is not likely to be announced at this week’s Summit of the Americas."

"Rate expectations are softening modestly and OIS are pricing roughly 5bpts of tightening for April, 10bpts for May, and just under one full hike by July."

"Improving terms of trade are providing support to CAD and delivering a critical offset to the modest deterioration in the outlook for relative central bank policy."

"We are bullish CAD, looking to medium-term strength into the spring/summer period."