17 Aug 2015
USD/CAD door open for further gains – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the likeliness of the pair to test higher levels in the near term.
Key Quotes
“USDCAD has reclaimed a 1.31 handle as commodity-linked currencies remain under pressure even though oil prices have recovered from a softer start to the week”.
“The move puts the potential for further topside into focus as spot has traded through trendline resistance around 1.3120”.
“This remains the key pivot for today’s session. We will feel more confident that a move higher is indeed underway with a close above last Thursday’s high of 1.3158 today, while the 4 August peak of 1.3213 is the key threshold to further gains”.
“Fundamentally, the domestic catalysts for a move higher are concentrated on Friday, with the June retail sales and July CPI data releases”.
“Of these, we think the retail sales reading will be of greater interest to the Bank of Canada as policymakers have reverted to a less tangible assessment of ‘underlying inflation’ in guiding their policy choices”.
“The FOMC minutes (Wednesday) may have the decisive role, however, as investors look to gauge the probability of a September rate hike”.
Key Quotes
“USDCAD has reclaimed a 1.31 handle as commodity-linked currencies remain under pressure even though oil prices have recovered from a softer start to the week”.
“The move puts the potential for further topside into focus as spot has traded through trendline resistance around 1.3120”.
“This remains the key pivot for today’s session. We will feel more confident that a move higher is indeed underway with a close above last Thursday’s high of 1.3158 today, while the 4 August peak of 1.3213 is the key threshold to further gains”.
“Fundamentally, the domestic catalysts for a move higher are concentrated on Friday, with the June retail sales and July CPI data releases”.
“Of these, we think the retail sales reading will be of greater interest to the Bank of Canada as policymakers have reverted to a less tangible assessment of ‘underlying inflation’ in guiding their policy choices”.
“The FOMC minutes (Wednesday) may have the decisive role, however, as investors look to gauge the probability of a September rate hike”.