Forex Flash: USD/CAD - Fundamental support for USD/CAD should be exacerbated –TD Securities

FXstreet.com (London) - Greg T. Moore FX Strategist at TD Securities explains that equities are said to be a leading indicator of the economy.

With this in mind, he sees this building trend of Canadian equity underperformance to be yet another warning signal on the outlook for the Canadian economy—relative to the US. His team expect the US to sustain a decent growth advantage over Canada through the end of this year and into 2014. They said for the USD/CAD, that this US growth advantage would provide a strong underlying support and the fundamental support for USD/CAD should be exacerbated if, as they expect, more robust US activity encourages the Fed to pare back its QE purchases.