13 Jul 2015
USD/CAD bullish to neutral near term – Scotiabank
FXStreet (Edinburgh) - Eric Theoret, Currency Strategist at Scotiabank, noted the short term technicals for the pair remain on the bullish side.
Key Quotes
“This week’s domestic risk centers on Wednesday’s BoC decision, statement, and MPR release. The balance of Bloomberg survey respondents (16 of 29) expect a 25bpt cut to 0.5%”.
“We remain biased to a hold at 0.75% as we consider the BoC’s expectations of export-led growth driven by an expansion of U.S. demand through the second half of 2015”.
“Oil prices remain close to the April MPR’s assumption of $55/bbl for Brent, providing some reassurance despite their recent decline”.
“Bullish momentum indicators are softening and we note that USDCAD appears unable to maintain gains above 1.2750”.
“However, we also note that recent declines have been unable to break materially below 1.2680 and thus await resolution of the five-session range”.
“The 9 day MA lies at 1.2654, a break of this level would shift the focus to the July 6 open around 1.2550. A meaningful break of the recent high near 1.2780 would shift the focus to the YTD (multi-year) high 1.2835”.
Key Quotes
“This week’s domestic risk centers on Wednesday’s BoC decision, statement, and MPR release. The balance of Bloomberg survey respondents (16 of 29) expect a 25bpt cut to 0.5%”.
“We remain biased to a hold at 0.75% as we consider the BoC’s expectations of export-led growth driven by an expansion of U.S. demand through the second half of 2015”.
“Oil prices remain close to the April MPR’s assumption of $55/bbl for Brent, providing some reassurance despite their recent decline”.
“Bullish momentum indicators are softening and we note that USDCAD appears unable to maintain gains above 1.2750”.
“However, we also note that recent declines have been unable to break materially below 1.2680 and thus await resolution of the five-session range”.
“The 9 day MA lies at 1.2654, a break of this level would shift the focus to the July 6 open around 1.2550. A meaningful break of the recent high near 1.2780 would shift the focus to the YTD (multi-year) high 1.2835”.