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27 May 2015
Buy the pullbacks in USD/CAD, targets 1.28 – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see retracements in the pair as buying opportunities with 1.2800 on sight in the medium term.
Key Quotes
“Absent a shift in tone from the Bank, we see little headwind to USDCAD’s bounce”.
“Governor Poloz’s optimism seems like it has been fully reflected by the market so it is difficult to sound incrementally more optimistic but given the stronger bid tone in overnight trading, USDCAD may be prone to a bit of a pullback”.
“Our daily model suggests that USDCAD is trading nearly one standard deviation above market-based equilibrium of about 1.2270, but with the focus on the nascent breakout of USDJPY and firm USD buying, we think a pullback should be bought (we target 1.28 for USDCAD over the coming months)”.
Key Quotes
“Absent a shift in tone from the Bank, we see little headwind to USDCAD’s bounce”.
“Governor Poloz’s optimism seems like it has been fully reflected by the market so it is difficult to sound incrementally more optimistic but given the stronger bid tone in overnight trading, USDCAD may be prone to a bit of a pullback”.
“Our daily model suggests that USDCAD is trading nearly one standard deviation above market-based equilibrium of about 1.2270, but with the focus on the nascent breakout of USDJPY and firm USD buying, we think a pullback should be bought (we target 1.28 for USDCAD over the coming months)”.