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21 Aug 2015
USD/CAD could test the upper 1.3100s – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the pair could attempt a bull run towards the 1.3175/80 band and eve 1.3200.
Key Quotes
“After most of the last week consolidating between 1.3025 and 1.3175, USDCAD may be poised for renewed vigor as today brings the long awaited retail sales (June) and CPI (July) reports”.
“Of these, we think the retail sales reading is likely to cast the longer shadow, at least for the Bank of Canada as policymakers have shifted to a more amorphous estimate of ‘underlying inflation’ for gauging consumer cost pressures”.
“Relative to the consensus, we are more cautious for both of these reports, which leaves CAD likely to trade with a weaker tone overall. As the US data and event calendar is virtually empty, this backdrop has us favoring a test of topside resistance at 1.3175/80 with an eye on the recent cycle highs of 1.3213”.
Key Quotes
“After most of the last week consolidating between 1.3025 and 1.3175, USDCAD may be poised for renewed vigor as today brings the long awaited retail sales (June) and CPI (July) reports”.
“Of these, we think the retail sales reading is likely to cast the longer shadow, at least for the Bank of Canada as policymakers have shifted to a more amorphous estimate of ‘underlying inflation’ for gauging consumer cost pressures”.
“Relative to the consensus, we are more cautious for both of these reports, which leaves CAD likely to trade with a weaker tone overall. As the US data and event calendar is virtually empty, this backdrop has us favoring a test of topside resistance at 1.3175/80 with an eye on the recent cycle highs of 1.3213”.