CAD seasonality analysis: Spring into action, fall back Into into line - BofA
What's the seasonal pattern in the loonie
Bank of America Global Research discusses CAD seasonality patterns.
"CAD seasonality is strongest from April through June and then picks up again in November. The tendency is for CAD to moderately appreciate in the spring and moderately depreciate in the fall," BofA notes.
"This is mostly a reflection of broader USD seasonality but also reflects seasonality seen in risk appetite and oil prices. The latter is important to CAD as Canada is a key oil producer, with higher oil boosting the country's
terms of trade, export revenues and hence the trade balance. We find
results intuitive as these are three of the most important drivers of
the loonie historically," BofA adds.