22 Aug 2013
Flash: USD/CAD post FOMC minutes - TD Securities
FXstreet.com (Barcelona) - Research teams at TD Securities said, “The broader USD undertone remains constructive in the post FOMC minutes environment”.
Key Quotes:
“ Longer-term rates are edging higher (US 10-year yields north of 2.90%) but we rather think that short-term rate (differentials) need to move more obviously in the USD’s favour to sustain and extend these gains”.
“The USD/CAD rally extended nicely yesterday, taking funds through the mid 1.04 resistance zone, reflecting the broadly better bid big dollar. Chatter through the overnight market has centered on heavy selling interest around and a little above 1.05”.
“Today, a combination of firm US weekly claims, housing and preliminary PMI data might contrast with the expected softening in Canadian retail sales growth in June after the outsized rally in May to give USD/CAD a shout a testing the 1.0510/20 area (and pushing on to 1.0550)”.
“From a technical point of view, USD/CAD looks well supported now above the 1.044050 area (key support). Trend momentum is strong, so expect limited downside. Target remains 1.0600/50”.
Key Quotes:
“ Longer-term rates are edging higher (US 10-year yields north of 2.90%) but we rather think that short-term rate (differentials) need to move more obviously in the USD’s favour to sustain and extend these gains”.
“The USD/CAD rally extended nicely yesterday, taking funds through the mid 1.04 resistance zone, reflecting the broadly better bid big dollar. Chatter through the overnight market has centered on heavy selling interest around and a little above 1.05”.
“Today, a combination of firm US weekly claims, housing and preliminary PMI data might contrast with the expected softening in Canadian retail sales growth in June after the outsized rally in May to give USD/CAD a shout a testing the 1.0510/20 area (and pushing on to 1.0550)”.
“From a technical point of view, USD/CAD looks well supported now above the 1.044050 area (key support). Trend momentum is strong, so expect limited downside. Target remains 1.0600/50”.