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6 Mar 2014
Flash: Eyes on CAD post cautious BoC - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities explained, "The BoC retained the cautious tone that we expected it would at yesterday’s policy meeting but the markets have taken the absence of a further shift in policy thinking as a modest CAD-positive when the statement was really a reiteration of January’s heightened concern about inflation".
Key Quotes
"Despite the pop higher in January CPI, we still rather think inflation will end Q1 about where the BoC thought it would in the January MPR (headline close to or a little below 1%). There’s no all clear on inflation here just yet."
"USD/CAD has taken back a little more than half of the sharp rally seen through the middle of last month and while the slide in price makes as a little uncomfortable (below the 40-day MA) —we retain a broadly bullish USD/CAD view and a core long position—we do not expect USD/CAD losses to pick up materially from here. Rather, we look for support to hold up in the low 1.10s and for bargain hunting interest to pick up."
"With focus elsewhere (this morning at least and Canadian employment out tomorrow, USD/CAD may be something of a sideshow today.
Key Quotes
"Despite the pop higher in January CPI, we still rather think inflation will end Q1 about where the BoC thought it would in the January MPR (headline close to or a little below 1%). There’s no all clear on inflation here just yet."
"USD/CAD has taken back a little more than half of the sharp rally seen through the middle of last month and while the slide in price makes as a little uncomfortable (below the 40-day MA) —we retain a broadly bullish USD/CAD view and a core long position—we do not expect USD/CAD losses to pick up materially from here. Rather, we look for support to hold up in the low 1.10s and for bargain hunting interest to pick up."
"With focus elsewhere (this morning at least and Canadian employment out tomorrow, USD/CAD may be something of a sideshow today.