EFTA Document EFTA01446660

9 January 2014 FX Blueprint: Thin end of the wedge CAD Flow Picture Very Nega We are more bearish CAD. Speculative shorts are building, but on the portfolio flow side, the balance of payments is characterized by a large overhang of fixed income inflow positions as a by-product of Fed OE (chart 4). Canada benefitted from close to 280bn of "excess" inflows over the 2010-2013, which have plugged a sharply wider current account deficit similar in size to the UK. The UK, in contrast, has su