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3 Aug 2015
Upside limited in USD/CAD? – TDS
FXStreet (Edinburgh) - Strategists at TD Securities believes that further upside in the pair should mainly come from the USD-side of the equation, and most likely via a Fed movee.
Key Quotes
“USDCAD staged a weekly close above 1.3065, which marked the panic highs from March 2009, reached a mere three days after the S&P 500 found its post-crisis low”.
“This, we think, has opened the door to a new trading range and reinvigorated the up-trend as Canadian growth continues to lag and energy prices fall”.
“We remain of the view, however, that most of the heavy lifting from here will need to be done by the US leg. Policy divergence between the Fed and the BoC will be the primary driver for further gains”.
“With the BoC already in easing mode, it will soon be time for the Fed to hold up its part of the bargain”.
Key Quotes
“USDCAD staged a weekly close above 1.3065, which marked the panic highs from March 2009, reached a mere three days after the S&P 500 found its post-crisis low”.
“This, we think, has opened the door to a new trading range and reinvigorated the up-trend as Canadian growth continues to lag and energy prices fall”.
“We remain of the view, however, that most of the heavy lifting from here will need to be done by the US leg. Policy divergence between the Fed and the BoC will be the primary driver for further gains”.
“With the BoC already in easing mode, it will soon be time for the Fed to hold up its part of the bargain”.