24 Mar 2015
USD/CAD: Bullish longer term outlook, but...- TDS
FXStreet (Barcelona) - Shaun Osborne, analyst at TD Securities explained that they think a break under 1.2360 is a “go with” move for an opportunistic, tactical short USD/CAD position.
Key Quotes:
"But we remain bullish on the outlook for USD/CAD from a longer-term perspective; sluggish growth, soft inflation and weak labour markets in Canada will keep the BoC on hold (at least) through the balance of this year in contrast to the tightening moves we expect from the US."
"A dip below 1.20 through Q2 would give investors an attractive opportunity to reverse short USD positions or initiate fresh USD/CAD longs."
"After all, the second half of the year is better for USD/CAD seasonally as well."
Key Quotes:
"But we remain bullish on the outlook for USD/CAD from a longer-term perspective; sluggish growth, soft inflation and weak labour markets in Canada will keep the BoC on hold (at least) through the balance of this year in contrast to the tightening moves we expect from the US."
"A dip below 1.20 through Q2 would give investors an attractive opportunity to reverse short USD positions or initiate fresh USD/CAD longs."
"After all, the second half of the year is better for USD/CAD seasonally as well."