RBC: BoC vs. Fed - A 2002/03 Policy Rerun?

From DerailedCapitalism:

Yesterday we expressed our discontent with RBC's Note to Clients post-FOMC meeting. Following our posting, the below email was sent to RBC:

Hi,

We appreciate you forwarding this report as it was the most
critical FOMC meeting in history. Unfortunately, we were disappointed
by the quality and promptness of the note. The FOMC Press Release
occurred at 2:15pm and the client note was sent out at 2:45pm. At which
point, in the time span turnover there was more than adequate time
available to provide some economist thoughts and analysis on the
implications, not merely a c&p with a few words to make the note
flow. Multiple websites and blogs had commentary on this pivotal event
moments after the release, with a following commentary within 15-20
minutes.

Regardless, at this point would it be possible to receive a copy
of the economist thoughts on QE2 and the implications that they feel
this will have on the Canadian economic landscape.

Thanks,

DerailedCapitalism

While the individual to whom the email was sent to did not take the
liberty of responding to our email, we did receive a copy of this pdf
providing the information that we asked for and RBC's economists' take
on how this will affect the Canadian economy.

From the report:

FX Bottom-line: Heading into 2011, USD/CAD is facing a divergence in
US-Canadian policy rates reminiscent of the 2002/03 period. Although
USD/CAD declined by 15% during that period, we do not envision a similar
demise in USD/CAD but diverging policy stances will keep USD/CAD under
downward pressure throughout 2011. However, should the growth decoupling
between the global and the US recoveries continue at the same pace as
seen during the last 12 months, the 2002/03 scenario could well repeat
itself in the currency market, leaving the trend in CAD against USD
looking increasingly similar to the most recent rally in AUD/USD.

In regards to Canada the report makes the following statements:

- full-time jobs still below pre-crisis levels and quality of new jobs has deteriorated

- trade balance – another negative month coming up

- USD/CAD testing bottom end of technical range

CDP101104

Comments

[[e-mail]]

I have been investing in Canada since 2003 and did well right up to the Halloween massacre Party that Finance Minister James Flannigan did when we investors just got our butts handed to us.  With that said, I still invest in Canada due to their banking system being far superior to the U.S. ponzi scheme and the criminal elements in the Government pretending to be Central Bankers.  As long as commodities stay in a upward trend I intend to stay in the Canadian markets in which I receive a great dividend, currency appreciation and an increase of growth that appears sustainable.

[prophet]

Nice.