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17 Mar 2014
Flash: USD/CAD retains the bullish bias - TD Securities
FXStreet (Barcelona) - Shaun Osbourne, Chief FX Strategist at TD Securities, remarks the bullish outlook of the USD/CAD.
Key Quotes
"USDCAD remains trapped in a right range. Event risk is evident for the CAD this week as well—Governor Poloz speaks Tuesday at the Halifax Chamber of Commerce in NS and will hold a press conference afterwards."
"On Friday, Canada releases key data—retail sales and CPI—which may go some way to shaking the CAD out of the consolidation range in place in the past few weeks—one way or the other. We favour s topside break out above 1.1130."
"USDCAD retains a heavy bias so far today. The CAD is well-supported alongside the broadly firmer AUD and NZD, while safe-haves such as the JPY and CHF are under-performing.USDCAD is pressuring support in the mid 1.10 area and easing below the 40-day MA at 1.1072 in early trade today—though we don’t think the move is likely to extend too far at present."
"We still rather think the underlying trend in funds is higher, supported by improving US fundamentals, Fed tapering and the less than dynamic growth backdrop in Canada which has encouraged a significant narrowing in spreads in the belly of the curve in the past few months, with US-Canada 5 year spreads tracking a little below flat again today helping support the USD arou8nd 1.1050/70."
Key Quotes
"USDCAD remains trapped in a right range. Event risk is evident for the CAD this week as well—Governor Poloz speaks Tuesday at the Halifax Chamber of Commerce in NS and will hold a press conference afterwards."
"On Friday, Canada releases key data—retail sales and CPI—which may go some way to shaking the CAD out of the consolidation range in place in the past few weeks—one way or the other. We favour s topside break out above 1.1130."
"USDCAD retains a heavy bias so far today. The CAD is well-supported alongside the broadly firmer AUD and NZD, while safe-haves such as the JPY and CHF are under-performing.USDCAD is pressuring support in the mid 1.10 area and easing below the 40-day MA at 1.1072 in early trade today—though we don’t think the move is likely to extend too far at present."
"We still rather think the underlying trend in funds is higher, supported by improving US fundamentals, Fed tapering and the less than dynamic growth backdrop in Canada which has encouraged a significant narrowing in spreads in the belly of the curve in the past few months, with US-Canada 5 year spreads tracking a little below flat again today helping support the USD arou8nd 1.1050/70."