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5 May 2015
USD/CAD looking ripe to see a rise in H2 – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, believe that dovish comments from Wilkins might lift USD/CAD, but the H2 bullish view from a potential USD rebound still stands.
Key Quotes
“We think USDCAD has found a short-term floor at least after last week’s test of the mid 1.19 area and we continue to view the H2 outlook as being more constructive for the USD overall.”
“Near-term, however, crude prices near $60/bbl and continued pressure on US-Canada spreads as all thoughts of a BoC rate cut over the next year have been more or less squeezed out of the OIS curve will curb the recovery potential in funds.”
“We estimate fair value for USDCAD today stands at 1.2095, right around North American opening levels.”
“Dovish-leaning comments from Wilkins today should help lift USDCAD though the early bias for funds looks soft as the market pressures support around 1.21; no rebound from here today on Wilkins and/or this morning’s data reports may see 1.20 retested.”
Key Quotes
“We think USDCAD has found a short-term floor at least after last week’s test of the mid 1.19 area and we continue to view the H2 outlook as being more constructive for the USD overall.”
“Near-term, however, crude prices near $60/bbl and continued pressure on US-Canada spreads as all thoughts of a BoC rate cut over the next year have been more or less squeezed out of the OIS curve will curb the recovery potential in funds.”
“We estimate fair value for USDCAD today stands at 1.2095, right around North American opening levels.”
“Dovish-leaning comments from Wilkins today should help lift USDCAD though the early bias for funds looks soft as the market pressures support around 1.21; no rebound from here today on Wilkins and/or this morning’s data reports may see 1.20 retested.”