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26 Feb 2014
Flash: CAD awaits a data packed end of week - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities explained that USD/CAD remains in consolidation mode.
Key Quotes:
“The market backed off from the high 1.11s sharply last Friday following the better-than-expected CPI data but the scope for retracement of the sharp mid-week rally in funds last week has, as we expected, remained rather limited."
"So far, the USD has given back a little less than 50% of last Wednesday's rally and we think losses should remain contained to the 1.1045/50 area as investors await Canadian current account data (Thursday) and, more importantly, GDP data (Friday)."
"We expect December industry level GDP will be disappointing (consensus also calls for a weak –0.3% reading in the month), reflecting the weak activity data we have seen over the weather-affected month so far. For the quarter, GDP growth should be a more respectable 2.5% or so. While BoC Governor Poloz sounded a little more upbeat in comments made at the G-20 meeting over the weekend, we doubt the tone of the BoC message at the March 5th policy meeting will be much different from the dovish message seen in January."
Key Quotes:
“The market backed off from the high 1.11s sharply last Friday following the better-than-expected CPI data but the scope for retracement of the sharp mid-week rally in funds last week has, as we expected, remained rather limited."
"So far, the USD has given back a little less than 50% of last Wednesday's rally and we think losses should remain contained to the 1.1045/50 area as investors await Canadian current account data (Thursday) and, more importantly, GDP data (Friday)."
"We expect December industry level GDP will be disappointing (consensus also calls for a weak –0.3% reading in the month), reflecting the weak activity data we have seen over the weather-affected month so far. For the quarter, GDP growth should be a more respectable 2.5% or so. While BoC Governor Poloz sounded a little more upbeat in comments made at the G-20 meeting over the weekend, we doubt the tone of the BoC message at the March 5th policy meeting will be much different from the dovish message seen in January."