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2 Sep 2015
USD/CAD keeps the bullish stance – Scotiabank
FXStreet (Edinburgh) - Eric Theoret, Currency Strategist at Scotiabank, has reiterated the bullish perspective for the pair in the near term.
Key Quotes
“Relative policy has provided for little in terms of recent movement, with the 2Y U.S.-Canada yield spread relatively stable since early August. Measures of sentiment have notably diverged from CAD, with options prices hinting to a reduced demand for downside protection. The divergence is all the more notable in an environment of rising volatility with implied USDCAD vol. currently at its highest level since Q1”.
“USDCAD has once again bounced off support around its 21 day MA (1.3152), climbing back above the 9 day MA (1.3241) toward the upper end of its 8-session range”.
“Momentum signals are conflicted, and bullish trend indicators are showing signs of moderation. Near term support is expected near 1.3120, with few resistance levels beyond 1.3300 and 1.3350”.
Key Quotes
“Relative policy has provided for little in terms of recent movement, with the 2Y U.S.-Canada yield spread relatively stable since early August. Measures of sentiment have notably diverged from CAD, with options prices hinting to a reduced demand for downside protection. The divergence is all the more notable in an environment of rising volatility with implied USDCAD vol. currently at its highest level since Q1”.
“USDCAD has once again bounced off support around its 21 day MA (1.3152), climbing back above the 9 day MA (1.3241) toward the upper end of its 8-session range”.
“Momentum signals are conflicted, and bullish trend indicators are showing signs of moderation. Near term support is expected near 1.3120, with few resistance levels beyond 1.3300 and 1.3350”.