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13 Mar 2014
Flash: USD/CAD losses could extend to 1.09’s - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities explained that a A broadly weaker USD and a bid for risk has dumped USD/CAD back to the low end of the consolidation band that has developed over the past few weeks.
Key Quotes:
The market’s inability to trade higher through resistance in the mid 1.11s this week may fuel expectations that the rally in funds is complete. We beg to differ though—underlying fundamental trends are still a drag on the CAD’s outlook but there has just been a lack of fresh incentives around to drive the CAD lower."
"That may not change for another week or so. The Canadian data run picks up again today but the releases are mainly second-tier stuff and not the sort of thing that usually influences spt. For that, we still have to wait until next week and next Friday’s retail sales and CPI report especially."
"We are a little skeptical that the rebound in risk appetite can extend significantly at this point. The sell off in funds has lost a bit of momentum through in the last couple of hours and we think the USD should start to see support firm up in the 1.1050/60 range today (40-day MA and trend support)."
"The USD should respond positive to gains back through 1.1080 in our session. Weakness below here could see losses extend to the high 1.09s."
Key Quotes:
The market’s inability to trade higher through resistance in the mid 1.11s this week may fuel expectations that the rally in funds is complete. We beg to differ though—underlying fundamental trends are still a drag on the CAD’s outlook but there has just been a lack of fresh incentives around to drive the CAD lower."
"That may not change for another week or so. The Canadian data run picks up again today but the releases are mainly second-tier stuff and not the sort of thing that usually influences spt. For that, we still have to wait until next week and next Friday’s retail sales and CPI report especially."
"We are a little skeptical that the rebound in risk appetite can extend significantly at this point. The sell off in funds has lost a bit of momentum through in the last couple of hours and we think the USD should start to see support firm up in the 1.1050/60 range today (40-day MA and trend support)."
"The USD should respond positive to gains back through 1.1080 in our session. Weakness below here could see losses extend to the high 1.09s."