Back
29 Jul 2014
USD/CAD: Consolidation Continues – TD Securities
FXStreet (Łódź) - The TD Securities team observe that the USD/CAD has been barely moving since last Friday and there are no events scheduled for today which could drive the markets.
Key quotes
“We remain positive on the USD outlook—firmer growth, steady employment and a further step towards the winding up of QE should be evident this week—and we remain cautious on prospects for Canada, given sluggish job growth trends here and the absence of any clear rotation towards more sustainable growth drivers.”
“We continue to feel the broader fundamental trends are geared towards steady appreciation in USD/CAD through the balance of the year.”
“In the short-term, we think technical patterns also favour more USD/CAD gains—though perhaps just not today.”
“The rebound from the low 1.06 area earlier in July signaled a halt and reversal in the bear trend that had pulled USD/CAD back from 1.12+ levels in Q1.”
“The break out in the short-term (bull wedge) consolidation that formed up through the middle of this month implies the more immediate risk of a push to 1.09.”
“We had expected the low 1.08 area to slow USD/CAD gains in the short run but we look for gains through 1.0825/35 (200-day MA at 1.0835) to trigger a renewed rally that gets us to our 1.09 at least.”
Key quotes
“We remain positive on the USD outlook—firmer growth, steady employment and a further step towards the winding up of QE should be evident this week—and we remain cautious on prospects for Canada, given sluggish job growth trends here and the absence of any clear rotation towards more sustainable growth drivers.”
“We continue to feel the broader fundamental trends are geared towards steady appreciation in USD/CAD through the balance of the year.”
“In the short-term, we think technical patterns also favour more USD/CAD gains—though perhaps just not today.”
“The rebound from the low 1.06 area earlier in July signaled a halt and reversal in the bear trend that had pulled USD/CAD back from 1.12+ levels in Q1.”
“The break out in the short-term (bull wedge) consolidation that formed up through the middle of this month implies the more immediate risk of a push to 1.09.”
“We had expected the low 1.08 area to slow USD/CAD gains in the short run but we look for gains through 1.0825/35 (200-day MA at 1.0835) to trigger a renewed rally that gets us to our 1.09 at least.”