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13 Apr 2015
USD/CAD to remain capped at mid/upper 1.26 region – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities see firmer oil and narrower spreads to cap USD/CAD gains around the mid/upper 1.26 area.
Key Quotes
“USDCAD is trading constructively so far today, reflecting the generally well-bid USD undertone. But funds struggled to hold on to the early gains Friday, after the employment data surprise and while there is no such catalyst on the agenda for today, we still think funds may find it hard to rally near-term at least.”
“Firmer oil and generally narrower spreads continue to point spot in the other direction, in fact, according to our fundamental FV assessment (which indicates an equilibrium rate of 1.2468 today, based on Friday’s closing data).”
“This should reinforce technical resistance in the mid/upper 1.26s, all else remaining equal. We see support at 1.2595/1.2605.”
Key Quotes
“USDCAD is trading constructively so far today, reflecting the generally well-bid USD undertone. But funds struggled to hold on to the early gains Friday, after the employment data surprise and while there is no such catalyst on the agenda for today, we still think funds may find it hard to rally near-term at least.”
“Firmer oil and generally narrower spreads continue to point spot in the other direction, in fact, according to our fundamental FV assessment (which indicates an equilibrium rate of 1.2468 today, based on Friday’s closing data).”
“This should reinforce technical resistance in the mid/upper 1.26s, all else remaining equal. We see support at 1.2595/1.2605.”