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8 May 2015
USD/CAD: bid above 1.2110 – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities note that any intraday move above 1.2110 might fuel bids and lead USD/CAD to test 1.22 levels.
Key Quotes
“Overall, scenario risks favour at least modest USDCAD long positions running into the data and our own forecasts favour fading any brief downside move in funds post-data.”
“We think USDCAD has done a lot of work to lift itself from this week’s slide through 1.20 and we look for confirmation of a broader turn to come this morning in the event of a squeeze back above 1.22 which would pave the way for progression towards 1.2450."
“Early gains through 1.2110 in our session should put a bid under funds and gains through 1.2135 would be a “’heads up” that a test of 1.22 is in the offing—and fairly quickly."
“Note that shifts in fixed income have resulted in a decent move in US-Canada spreads and a move up in our estimate of fair value for USDCAD to 1.2197 this morning.”
Key Quotes
“Overall, scenario risks favour at least modest USDCAD long positions running into the data and our own forecasts favour fading any brief downside move in funds post-data.”
“We think USDCAD has done a lot of work to lift itself from this week’s slide through 1.20 and we look for confirmation of a broader turn to come this morning in the event of a squeeze back above 1.22 which would pave the way for progression towards 1.2450."
“Early gains through 1.2110 in our session should put a bid under funds and gains through 1.2135 would be a “’heads up” that a test of 1.22 is in the offing—and fairly quickly."
“Note that shifts in fixed income have resulted in a decent move in US-Canada spreads and a move up in our estimate of fair value for USDCAD to 1.2197 this morning.”