27 Apr 2015
USD/CAD points to range-bound – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, sees the pair pointing to a consolidative pattern ahead of key releases and BoC’s Poloz testimony.
Key Quotes
“Technicals are bearish, warning of further downside risk; while fundamentals have also shifted to a more optimistic outlook”.
“This week’s focus will be February GDP, expected to fall –0.1%m/m, reflecting the ‘atrocious’ first quarter. However, the market is well prepared for a weak print, instead looking towards Q2 for direction”.
“In addition this week the market will look to Governor Poloz’s appearance in front of Parliament”.
“In addition, oil markets will continue to be a core driver of CAD. Technicals are warning of a loss of upward momentum in WTI pricing and our oil analysts caution that this week’s inventory build could be significant”.
“Accordingly, the factors are lining up against CAD this week; but technicals are still warning of downside risk; likely leaving USDCAD trading within its recent 1.2088 to 1.2328 range”.
Key Quotes
“Technicals are bearish, warning of further downside risk; while fundamentals have also shifted to a more optimistic outlook”.
“This week’s focus will be February GDP, expected to fall –0.1%m/m, reflecting the ‘atrocious’ first quarter. However, the market is well prepared for a weak print, instead looking towards Q2 for direction”.
“In addition this week the market will look to Governor Poloz’s appearance in front of Parliament”.
“In addition, oil markets will continue to be a core driver of CAD. Technicals are warning of a loss of upward momentum in WTI pricing and our oil analysts caution that this week’s inventory build could be significant”.
“Accordingly, the factors are lining up against CAD this week; but technicals are still warning of downside risk; likely leaving USDCAD trading within its recent 1.2088 to 1.2328 range”.