4 Aug 2015
USDCAD: Balance of risks tilts to the upside - TDS
FXStreet (Mumbai) - Analysts at TD Securities expected the ongoing strength in the USD/CAD pair to extends later in the New York session once Canadian markets re-open today after the Canadian Civic holiday observed on Monday.
Key Quotes:
“USDCAD remains at its high altitude - the Canadian economy is in a recession and bearish bets on the CAD remain intact.”
“There is no major economic data in Canada until tomorrow where the international merchandise trade balance for June will be a key focal point of Canadian economic releases for some time to come.”
“We have noted for some time that the trade balance is probably the most important indicator to watch when it comes to animating the risks around the BoC's policy stance.”
“This is because the BoC has hung its optimism hat on a resurgence of non-commodity exports which have failed to show any semblance of life this year.“
“We are broadly in line with the market in looking for a modest narrowing in the deficit from -$3.3B to -$2.8B. USDCAD will exhibit significant sensitivity to this data release tomorrow.”
“But, for the day ahead, there is not much data for markets to get excited over. And, with Canadian markets returning from holiday we may see a continuation of the upward drift in USDCAD over the past two sessions.“
Key Quotes:
“USDCAD remains at its high altitude - the Canadian economy is in a recession and bearish bets on the CAD remain intact.”
“There is no major economic data in Canada until tomorrow where the international merchandise trade balance for June will be a key focal point of Canadian economic releases for some time to come.”
“We have noted for some time that the trade balance is probably the most important indicator to watch when it comes to animating the risks around the BoC's policy stance.”
“This is because the BoC has hung its optimism hat on a resurgence of non-commodity exports which have failed to show any semblance of life this year.“
“We are broadly in line with the market in looking for a modest narrowing in the deficit from -$3.3B to -$2.8B. USDCAD will exhibit significant sensitivity to this data release tomorrow.”
“But, for the day ahead, there is not much data for markets to get excited over. And, with Canadian markets returning from holiday we may see a continuation of the upward drift in USDCAD over the past two sessions.“