1 May 2015
USD/CAD: upside bias – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, maintain an upside bias on USD/CAD, further noting that the pair trades in line with its fair value estimate at 1.2127.
Key Quotes
“USDCAD has rallied strongly from sub-1.20 levels earlier in the week but slipped rather easily off the highs in the low 1.21 area yesterday, making the bounce in funds look a little less impressive.”
“We still think the bias is higher though; the USD has found good support in the overnight session through the 1.2080s and the general step higher from the mid-week low remains intact.”
“The first move in our session looks set to be higher. The CAD has appeared very aloof to the steady rise in crude oil prices over the past few days, especially with WTI nearing $60/bbl but—crucially—US-Canada spreads continue to shift to more USD-supportive levels and we estimate that USDCAD is roughly in line with fundamental equilibrium (FV 1.2127) this morning.”
Key Quotes
“USDCAD has rallied strongly from sub-1.20 levels earlier in the week but slipped rather easily off the highs in the low 1.21 area yesterday, making the bounce in funds look a little less impressive.”
“We still think the bias is higher though; the USD has found good support in the overnight session through the 1.2080s and the general step higher from the mid-week low remains intact.”
“The first move in our session looks set to be higher. The CAD has appeared very aloof to the steady rise in crude oil prices over the past few days, especially with WTI nearing $60/bbl but—crucially—US-Canada spreads continue to shift to more USD-supportive levels and we estimate that USDCAD is roughly in line with fundamental equilibrium (FV 1.2127) this morning.”