Back
5 Feb 2015
USD/CAD gains could pick up above 1.2570 – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, expects USD to resume pushing the USD/CAD pair higher, further anticipating gains to pick up above 1.2570/75
Key Quotes
“We noted here yesterday that US-Canada yield spreads are moving in very supportive fashion as far as the USD is concerned, with the entire yield curve trading at a yield premium for the USD over CAD-bonds.”
“We think this constitutes a significant source of support for the USD and, potentially, points to more upside pressure on funds in the next few days, if the Canadian data disappoint (which is where we are positioned in terms of expectations for today’s Canadian Trade data and Friday’s Employment report).”
“Note we also expect an above consensus US trade data today; better trade data would suggest an upward revision to Q4 GDP.”
“Technically, we think the USD may be resuming its push higher; gains may not come quite as quickly as in the past few weeks but the fundamental backdrop is positive for the USD and we think that the technical situation is aligning bullishly across a range of time frames again after the mini-correction in the market over the turn of the month.”
“We suggested buying around 1.2560 late yesterday so this morning’s levels still look attractive for longs.”
“Technically, the intraday chart is setting up bullishly potentially for USDCAD via a basing/reversal formation (possible inverse Head & Shoulders) signal; look for USD gains to pick up above 1.2570/75.”
Key Quotes
“We noted here yesterday that US-Canada yield spreads are moving in very supportive fashion as far as the USD is concerned, with the entire yield curve trading at a yield premium for the USD over CAD-bonds.”
“We think this constitutes a significant source of support for the USD and, potentially, points to more upside pressure on funds in the next few days, if the Canadian data disappoint (which is where we are positioned in terms of expectations for today’s Canadian Trade data and Friday’s Employment report).”
“Note we also expect an above consensus US trade data today; better trade data would suggest an upward revision to Q4 GDP.”
“Technically, we think the USD may be resuming its push higher; gains may not come quite as quickly as in the past few weeks but the fundamental backdrop is positive for the USD and we think that the technical situation is aligning bullishly across a range of time frames again after the mini-correction in the market over the turn of the month.”
“We suggested buying around 1.2560 late yesterday so this morning’s levels still look attractive for longs.”
“Technically, the intraday chart is setting up bullishly potentially for USDCAD via a basing/reversal formation (possible inverse Head & Shoulders) signal; look for USD gains to pick up above 1.2570/75.”