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23 Aug 2013
Flash: USD/CAD has scope for 1.0800 – TD Securities
FXstreet.com (New York) - Technically, with the spot through short-term 76.4% retracement resistance at 1.0522, we look for the move up to extend back to 1.0600/50 quickly. The trend higher is well entrenched and we have revised up our target for this move to 1.08, suggests the TD Securities Team.
Key quotes
“The soft CAD trend may extend a little more near-term, especially on the crosses. The usual drivers of CAD movement—spreads (which remain at CAD-supportive levels), commodities and risk sentiment—seem to be more or less disconnected from short-term spot movement at the moment, leaving the recent downtrend looking like another wave of longer-term position liquidation.”
“Softer domestic data trends are not helping but, again, do not appear to be directly driving the CAD slide at the moment. We expect domestic inflation data to remain subdued today (see over for details), completing a trifecta of soft data points this week (after wholesale trade and retail sales). At the margin, this should add a little more pressure on the CAD.”
Key quotes
“The soft CAD trend may extend a little more near-term, especially on the crosses. The usual drivers of CAD movement—spreads (which remain at CAD-supportive levels), commodities and risk sentiment—seem to be more or less disconnected from short-term spot movement at the moment, leaving the recent downtrend looking like another wave of longer-term position liquidation.”
“Softer domestic data trends are not helping but, again, do not appear to be directly driving the CAD slide at the moment. We expect domestic inflation data to remain subdued today (see over for details), completing a trifecta of soft data points this week (after wholesale trade and retail sales). At the margin, this should add a little more pressure on the CAD.”