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29 Dec 2014
USD/CAD’s current range should until New Year – TDS
FXStreet (Barcelona) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Securities, anticipate the USD/CAD pair to hold its current range till the New Year before continuing to move further ahead towards the 1.19 target.
Key Quotes
“USDCAD has been confined to a narrow 35-point range since Christmas Eve and, barring an outsized move amidst thin liquidity, there seems to be no obvious catalyst for a sizeable widening of this range. Indeed, there is no domestic data on tap, not only today, but until Friday's release of RBC's Manufacturing PMI – a second tier indicator.”
“The message overall remains intact, as we continue to expect further gains in USDCAD in the coming months. “
“Technically, the current price range should be seen as a consolidation ahead of the next move up, although we anticipate it should carry us through to the start of the new year.”
“The underlying trend remains bullish though, and we would not be surprised if our Q3 1.19 target comes to fruition earlier in the year. As we noted before the Christmas break, look to buy USD dips and be ready for a fast start to 2015 for funds.”
Key Quotes
“USDCAD has been confined to a narrow 35-point range since Christmas Eve and, barring an outsized move amidst thin liquidity, there seems to be no obvious catalyst for a sizeable widening of this range. Indeed, there is no domestic data on tap, not only today, but until Friday's release of RBC's Manufacturing PMI – a second tier indicator.”
“The message overall remains intact, as we continue to expect further gains in USDCAD in the coming months. “
“Technically, the current price range should be seen as a consolidation ahead of the next move up, although we anticipate it should carry us through to the start of the new year.”
“The underlying trend remains bullish though, and we would not be surprised if our Q3 1.19 target comes to fruition earlier in the year. As we noted before the Christmas break, look to buy USD dips and be ready for a fast start to 2015 for funds.”