23 Dec 2014
CAD: short term bullish bias - Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, is biased to be long USD/CAD with short term technicals bullish for the pair which trades a little higher but within the recent range of 1.1549 – 1.1674.
Key Quotes
“CAD is up 0.1%, but still trading within the December 15th range of 1.1549 to 1.1674. The risk is a test higher driven by ongoing USD strength, low oil prices, economic risk, negative CAD sentiment and flows; however the holidays sessions combined with year-end are difficult to predict.”
“Today Canadian GDP is expected to increase +0.1%m/m or 2.1%y/y, weighed down by a set of generally softer data, including manufacturing sales, wholesale sales and retail sales. Juxtaposed against the release of U.S. GDP could underscore an important theme where Canada’s economy underperforms the U.S. economy. This is the last data release until January.”
“USDCAD short‐term technicals: bullish—with most signals warning of upside risk; however momentum has slowed, increasing the risk of range trading. We are biased to be long USDCAD, but holiday liquidity leaves it vulnerable to awkward patterns.”
Key Quotes
“CAD is up 0.1%, but still trading within the December 15th range of 1.1549 to 1.1674. The risk is a test higher driven by ongoing USD strength, low oil prices, economic risk, negative CAD sentiment and flows; however the holidays sessions combined with year-end are difficult to predict.”
“Today Canadian GDP is expected to increase +0.1%m/m or 2.1%y/y, weighed down by a set of generally softer data, including manufacturing sales, wholesale sales and retail sales. Juxtaposed against the release of U.S. GDP could underscore an important theme where Canada’s economy underperforms the U.S. economy. This is the last data release until January.”
“USDCAD short‐term technicals: bullish—with most signals warning of upside risk; however momentum has slowed, increasing the risk of range trading. We are biased to be long USDCAD, but holiday liquidity leaves it vulnerable to awkward patterns.”