26 Aug 2015
USD/CAD well supported around 1.3250 – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the pair finding good support in the mid-1.3200s so far.
Key Quotes
“A confusing day for USDCAD yesterday as it rallied against a backdrop of a WTI rebound”.
“Our one-month correlation study suggests WTI has the greatest influence for USDCAD but so are broader measures of risk sentiment”.
“As such, we rather think that amidst the market hysteria, the CAD will underperform since the economy is weakening and the perception of slowing global growth will also weigh negatively on export prospects”.
“As such, we think the bias is for USDCAD to drift higher in the short-term even though our daily fair value estimate is well below spot and tracking around the 1.3100 figure (our Q3 target is 1.33)”.
“The 1.3250 should be decent support but in the event of a break below we think 1.3150/1.3200 will prove to be a solid congestion zone but price action since”.
Key Quotes
“A confusing day for USDCAD yesterday as it rallied against a backdrop of a WTI rebound”.
“Our one-month correlation study suggests WTI has the greatest influence for USDCAD but so are broader measures of risk sentiment”.
“As such, we rather think that amidst the market hysteria, the CAD will underperform since the economy is weakening and the perception of slowing global growth will also weigh negatively on export prospects”.
“As such, we think the bias is for USDCAD to drift higher in the short-term even though our daily fair value estimate is well below spot and tracking around the 1.3100 figure (our Q3 target is 1.33)”.
“The 1.3250 should be decent support but in the event of a break below we think 1.3150/1.3200 will prove to be a solid congestion zone but price action since”.