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31 Jul 2015
USD/CAD stance remains bullish in the longer term – TDS
FXStreet (Edinburgh) - The FX Strategy Team at TD Securities reiterates its bullish view for the pair in the longer run.
Key Quotes
“USDCAD may struggle to trade to new highs above 1.3103 while the chances of further consolidation are pretty good, in our view”.
“Month-end flows dampen visibility, however, making for a more complicated picture overall”.
“On longer horizons, we remain longer term USDCAD bulls. Indeed, we now look for funds to rally to 1.35/1.37 at the turn of the year before gliding lower towards the very end of 2016”.
“Our reasoning is straight forward: Canada is in the early stages of a term of trade shock which we think will continue to weigh on the economy”.
“Moreover, the Bank of Canada will lean against material CAD strength to help the export sector, we think”.
“For now, our expectation is that the Fed will hike in the fall, and there is nothing in the FOMC statement earlier this week that suggests that September is off the table”.
Key Quotes
“USDCAD may struggle to trade to new highs above 1.3103 while the chances of further consolidation are pretty good, in our view”.
“Month-end flows dampen visibility, however, making for a more complicated picture overall”.
“On longer horizons, we remain longer term USDCAD bulls. Indeed, we now look for funds to rally to 1.35/1.37 at the turn of the year before gliding lower towards the very end of 2016”.
“Our reasoning is straight forward: Canada is in the early stages of a term of trade shock which we think will continue to weigh on the economy”.
“Moreover, the Bank of Canada will lean against material CAD strength to help the export sector, we think”.
“For now, our expectation is that the Fed will hike in the fall, and there is nothing in the FOMC statement earlier this week that suggests that September is off the table”.