4 Mar 2014
Flash: CAD consolidative ahead of BoC- TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities said, "" Easing geo-political tensions cut both ways for the CAD in a sense—oil and gold prices are lower but risk appetite has recovered—leaving the market still searching for a stronger sense of direction. The mood feels more consolidative ahead of the BoC policy meeting tomorrow."
Key Quotes
"We think the BoC is unlikely to dial up the dovish rhetoric even more; the better than expected data (CPI, GDP) simply do not support a further shift in the BoC’s policy position at this point. To some extent, the market has recognized these developments and priced them into the exchange rate but there is still a chance that the absence of a clearly dovish signal from the policy statement may drive the CAD a little higher still."
"The looming policy meeting should keep USD/CAD capped in the 1.11 area but we still look for support in the low 1.10 to hold near-term. Major support remains 1.0910. The short-term picture only turns USD-bullish again above 1.1145 for now."
Key Quotes
"We think the BoC is unlikely to dial up the dovish rhetoric even more; the better than expected data (CPI, GDP) simply do not support a further shift in the BoC’s policy position at this point. To some extent, the market has recognized these developments and priced them into the exchange rate but there is still a chance that the absence of a clearly dovish signal from the policy statement may drive the CAD a little higher still."
"The looming policy meeting should keep USD/CAD capped in the 1.11 area but we still look for support in the low 1.10 to hold near-term. Major support remains 1.0910. The short-term picture only turns USD-bullish again above 1.1145 for now."