5 Dec 2014
USD/CAD eyes jobs but trade important too – TDS
FXStreet (Barcelona) - According to the Research Team at TD Securities, a combination of a pullback in jobs, weak trade and lower oil prices would suggest suggest a sloppy day in store for the CAD.
Key Quotes
“The CAD has some important data to plow through today; not only is the employment report back on schedule with the US jobs data but Canadian trade data for October will also be released.”
“The CAD may see more of a reaction to disappointing trade data, which reflects the plunge in oil prices in the October month (down around 11% for WTI).”
“Note that the CAD is tracking quite a tight correlation with WTI currently, according to our matrix, so a combination of a pullback in jobs, weak trade and lower oil prices suggest a sloppy day in store for the CAD on the face of it. US data releases will have to play ball to get USDCAD moving significantly higher though.”
“On the charts, early gains through 1.1415 suggest a renewed push higher to retest 1.1455/65 resistance, where the market peaked out in early November and again at the start of this month.”
“We would rather look to get long on modest USDCAD dips but we like the way funds is trading on the charts at the moment and the positive technical tone suggests that a push to new highs ahead of the holidays should not be ruled out.”
Key Quotes
“The CAD has some important data to plow through today; not only is the employment report back on schedule with the US jobs data but Canadian trade data for October will also be released.”
“The CAD may see more of a reaction to disappointing trade data, which reflects the plunge in oil prices in the October month (down around 11% for WTI).”
“Note that the CAD is tracking quite a tight correlation with WTI currently, according to our matrix, so a combination of a pullback in jobs, weak trade and lower oil prices suggest a sloppy day in store for the CAD on the face of it. US data releases will have to play ball to get USDCAD moving significantly higher though.”
“On the charts, early gains through 1.1415 suggest a renewed push higher to retest 1.1455/65 resistance, where the market peaked out in early November and again at the start of this month.”
“We would rather look to get long on modest USDCAD dips but we like the way funds is trading on the charts at the moment and the positive technical tone suggests that a push to new highs ahead of the holidays should not be ruled out.”