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14 Apr 2015
USD/CAD short-term gains remain a sell opportunity – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities believe that USD/CAD trades above their fair-value estimate, and hence suggest selling short-term gains of the pair.
Key Quotes
“Ahead of the BoC meeting tomorrow, we expect CAD ranges to remain fairly narrow but firmer US data today may lift funds back to near the upper end of the recent trading range.”
“We continue to think that steadier crude oil and narrower US-Canada spreads imply that USDCAD should really be trading lower than spot levels currently (our FV equilibrium estimate this morning is 1.2462) so short-term gains are a selling opportunity.”
“Technically, price action suggests strong rejections of recent USD gains through the mid 1.26 area and scope for USDCAD losses to pick up below 1.2565.”
“EURCAD remains a sell; we reached our short-term bear target of 1.33 but move lower should extend to sub-1.30 levels in the weeks/months ahead.”
Key Quotes
“Ahead of the BoC meeting tomorrow, we expect CAD ranges to remain fairly narrow but firmer US data today may lift funds back to near the upper end of the recent trading range.”
“We continue to think that steadier crude oil and narrower US-Canada spreads imply that USDCAD should really be trading lower than spot levels currently (our FV equilibrium estimate this morning is 1.2462) so short-term gains are a selling opportunity.”
“Technically, price action suggests strong rejections of recent USD gains through the mid 1.26 area and scope for USDCAD losses to pick up below 1.2565.”
“EURCAD remains a sell; we reached our short-term bear target of 1.33 but move lower should extend to sub-1.30 levels in the weeks/months ahead.”