Bank OF America Global Research flags short USD/CAD ad the strongest signal from its FX scorecard (not BofA's macro or technical views).
"Short USDCAD (aggregate score -6) is the strongest signal in our FX scorecard. This is a strongly bearish reading supported across many components of the scorecard," BofA notes.
"Valuation (short-term & medium-term), relative cyclical dynamics, momentum, seasonals and our risk factor are all supportive of USDCAD lower. Relative monetary policy expectations are not, but we suspect reversion in the weeks ahead to neutralize or reverse the signal," BofA adds.