CAD: Vulnerable currency - BBH

Analysts at BBH explain that last week, they suggested the Canadian dollar appeared to be the most vulnerable of the major currencies on a risk-reward basis and it fell 1.3%, though the yen and New Zealand dollar were weaker.  

Key Quotes

“The US dollar reached 14-month highs, largely on the back of heightened trade tensions with the US as unresolved issues--lumber and dairy--saw it move in the cross-hairs of the Trump Administration.  We also note that the US dollar may have drawn support from the roughly 10 bp widening the two-year yield differential to 55 bp.  The multi-year high was set around 60 bp early last year.  Some are citing resistance near CAD1.3735, but we think the next important technical target s in the CAD1.3800-CAD1.3845.”