13 Feb 2015
USD/CAD: New range bound behaviour - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, Chief FX Strategist, Managing Director noted that USD/CAD is flat, trading within its well defined 1.2314 to 1.2799 range.
Key Quotes:
"Correlations have shifted, with those that measure interest rates (US—Canadian 2-year spread and the one year OIS) having become increasingly important.
"The shift likely also reflects the new range bound CAD behaviour, but it is worth watching closely. At the same time the intraday high to low range consensus to be wide."
"Today’s domestic data is manufacturing sales, an important release considering the almost desperate need for this sector to recovery to help offset the impact of lower oil prices."
"Typically it is a fairly volatile release, with the range of estimates this month relatively wide, from a contraction of –2% to an expansion of 1.8%. A surprise higher would prove positive for CAD."
Key Quotes:
"Correlations have shifted, with those that measure interest rates (US—Canadian 2-year spread and the one year OIS) having become increasingly important.
"The shift likely also reflects the new range bound CAD behaviour, but it is worth watching closely. At the same time the intraday high to low range consensus to be wide."
"Today’s domestic data is manufacturing sales, an important release considering the almost desperate need for this sector to recovery to help offset the impact of lower oil prices."
"Typically it is a fairly volatile release, with the range of estimates this month relatively wide, from a contraction of –2% to an expansion of 1.8%. A surprise higher would prove positive for CAD."