1 Aug 2013
Flash: No takeaways for CAD – TD Securities
FXstreet.com (London) - Research teams at TD Securities said For the CAD, there were no immediate takeaways from the FOMC.
Key Quotes:
“Short-term (2y) Canada-US interest rate spreads remain stable at what are already very supportive levels for the CAD, near the upper end of the recent trading range”.
“A further, significant widening in spreads in the CAD’’s favour seems unlikely, absent a sharp improvement in Canadian fundamentals or a deterioration in the US”.
“Fed tapering prospects , the broader slowdown in Asian growth and Australia's faltering commodity boom suggest that commodities may struggle to appreciate significantly from here and that downside risks for the complex remain”.
“We continue to feel that broader fundamental risks point towards a little more USD strength in the near-term”.
“USD selling yesterday left a big, outside range lower on the daily USD/CAD chart. Ordinarily, these signals are negative (bearish reversals after an run higher). But this bear signal formed after an extended run lower and may signal a selling climax in funds around 1.0250. Intraday gains above 1.0330 will be bullish now”.
Key Quotes:
“Short-term (2y) Canada-US interest rate spreads remain stable at what are already very supportive levels for the CAD, near the upper end of the recent trading range”.
“A further, significant widening in spreads in the CAD’’s favour seems unlikely, absent a sharp improvement in Canadian fundamentals or a deterioration in the US”.
“Fed tapering prospects , the broader slowdown in Asian growth and Australia's faltering commodity boom suggest that commodities may struggle to appreciate significantly from here and that downside risks for the complex remain”.
“We continue to feel that broader fundamental risks point towards a little more USD strength in the near-term”.
“USD selling yesterday left a big, outside range lower on the daily USD/CAD chart. Ordinarily, these signals are negative (bearish reversals after an run higher). But this bear signal formed after an extended run lower and may signal a selling climax in funds around 1.0250. Intraday gains above 1.0330 will be bullish now”.