24 Jun 2014
USD/CAD gains to pick up above 1.0745? - TD Securities
Shaun Osbourne, Chief FX Strategist at TD Securities noted that USD/CAD is virtually unchanged in a very tight range.
Key Quotes
“The domestic data slate is bare and US data releases today—consumer confidence data and more housing stats—should be modestly USD-supportive and may help steady US yield spreads which have narrowed against the USD modestly so far this week."
"USD/CAD looks oversold to us but that situation may persist for a while longer as the trend lower remains well entrenched in the market overall. We think the 1.07 area should provide some short-term support for the USD at least but the risk of a drop back to the 1.06 area (primary, long-term trend and retracement support) remains."
"If the CAD is going to reverse and lose any ground, a catalyst is needed and, considering the dearth of domestic data until later this week and early the next (April GDP is released on Monday, ahead of the national holiday here) it’s not obvious what that catalyst might be”.
"Intraday, we look for support around the 1.0715/20 area, where the market has based so far this week. Gains may pick up above 1.0745 towards the 1.0780/90 area but may struggle to get much beyond that point for now."
Key Quotes
“The domestic data slate is bare and US data releases today—consumer confidence data and more housing stats—should be modestly USD-supportive and may help steady US yield spreads which have narrowed against the USD modestly so far this week."
"USD/CAD looks oversold to us but that situation may persist for a while longer as the trend lower remains well entrenched in the market overall. We think the 1.07 area should provide some short-term support for the USD at least but the risk of a drop back to the 1.06 area (primary, long-term trend and retracement support) remains."
"If the CAD is going to reverse and lose any ground, a catalyst is needed and, considering the dearth of domestic data until later this week and early the next (April GDP is released on Monday, ahead of the national holiday here) it’s not obvious what that catalyst might be”.
"Intraday, we look for support around the 1.0715/20 area, where the market has based so far this week. Gains may pick up above 1.0745 towards the 1.0780/90 area but may struggle to get much beyond that point for now."