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28 Mar 2013
Forex Flash: US recovery fleeting? – UBS
FXstreet.com (Barcelona) - According to Research Analyst Gareth Berry at UBS, “US growth has been one of the better stories of 2013, however Canadian growth has been generally soft and failing to benefit materially from US 'tailwinds'. Investors seem more partial to the winds blowing south as the peso remains a strong performer.”
In the aftermath of upbeat data out of each North American economy, looking at the US-Canada growth relationship in the last 30 years, it does appear 'growth spillover', though positive, is limited. “The headwinds arising from internal rebalancing for now are more than enough to offset any of the benefits from the US recovery.” Berry warns.
In the aftermath of upbeat data out of each North American economy, looking at the US-Canada growth relationship in the last 30 years, it does appear 'growth spillover', though positive, is limited. “The headwinds arising from internal rebalancing for now are more than enough to offset any of the benefits from the US recovery.” Berry warns.