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21 May 2013
Flash: CAD tracks mild USD selling - BMO Capital Markets
FXstreet.com (Barcelona) - Stephen Gallo, European Head of Currency Strategy at BMO Capital markets notes that it was a fairly quiet session for CAD yesterday, with the Canadian holiday, as it trading in line with mild USD selling across the board.
Further, he sees that the double top in EUR/CAD at 1.3240 held well yesterday and would use that level as a pivot going forward. He thinks that we may see USD/CAD trade slightly lower still ahead of Bernanke, as the market generally trims some long USD positions that we re-added at pretty lofty levels last Friday. He finishes by writing, “That being said I still favour USD longs and would look to buy into the 1.020-30 area today. the rest of the Cad crosses remain mixed. AUD/CAD has bounced well, and looks as though we will find buyers on dips for now. Overall I would expect 1.0220-90 to cover the range today.”
Further, he sees that the double top in EUR/CAD at 1.3240 held well yesterday and would use that level as a pivot going forward. He thinks that we may see USD/CAD trade slightly lower still ahead of Bernanke, as the market generally trims some long USD positions that we re-added at pretty lofty levels last Friday. He finishes by writing, “That being said I still favour USD longs and would look to buy into the 1.020-30 area today. the rest of the Cad crosses remain mixed. AUD/CAD has bounced well, and looks as though we will find buyers on dips for now. Overall I would expect 1.0220-90 to cover the range today.”