USD/CAD: Dodge Reiterates M&A Flows Supporting CAD

Bank of Canada"s Dodge is on the wires, reiterating the earlier policy report that M&A flows are supporting the CAD. The current Thomson data for M&A flows show that M&A flows into Canada this year are at $51 bln and the largest of any net cross-border M&A flows. Inward flows have risen from only a net $5 bln in the first quarter of this year. Dodge also notes that the risk outlook appears balanced. USD/CAD is trading near the base of the day"s range at 1.1335 with the policy report meeting market expectations and higher gold and a weaker USD bolstering the CAD. M&A flows can be found on our website at www.ifrmarkets.com. Look under "Forex Watch" then "Macro Flows."