USD/CAD to remain capped at 1.2695/1.27 in the near-term - TDS

FXStreet (Barcelona) - With USD/CAD’s fair value remaining below the spot rate, Shaun Osborne, Chief FX Strategist at TD Securities, views that the pair might remain capped around 1.2695/1.27 area in the near-term.

Key Quotes

“From a technical point of view, the rise in USDCAD looks well-underpinned and we have to go with the move up; our fundamental Fair Value estimate for USDCAD remains below the spot rate this morning but weaker oil prices have helped lift the equilibrium assessment to 1.2528 (from nearer 1.24 late last week).”

“This may help curb USDCAD around the 1.2695/1.27 area near-term."

“We see support now at 1.2625.”