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2 Jan 2015
USD/CAD starts 2015 higher, may move towards 1.19 levels – TDS
FXStreet (Barcelona) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Securities, expect the USD/CAD to keep moving towards 1.19 by mid-2015, with the pair breaching the mid-December cap at 1.1674.
Key Quotes
“USDCAD is conforming to the norm of big dollar strength at moment and showing upward momentum early in the NA session, as it breached the 1.1674 ceiling that had capped the pair since mid-December.”
“We are not surprised by this move higher, which, as we noted ahead of the holiday season, aligns with the risk we highlighted at the time of a sizeable and swift push higher early in the New Year.”
“If the US PMI disappoints the market call as we are expecting, funds may lose some momentum today, but overall we expect the pair to keep moving in the direction of our 1.19 mid-year target in the coming days, as crude oil remains under pressure and US-Canada interest rate spreads lend further support to the USD.”
Key Quotes
“USDCAD is conforming to the norm of big dollar strength at moment and showing upward momentum early in the NA session, as it breached the 1.1674 ceiling that had capped the pair since mid-December.”
“We are not surprised by this move higher, which, as we noted ahead of the holiday season, aligns with the risk we highlighted at the time of a sizeable and swift push higher early in the New Year.”
“If the US PMI disappoints the market call as we are expecting, funds may lose some momentum today, but overall we expect the pair to keep moving in the direction of our 1.19 mid-year target in the coming days, as crude oil remains under pressure and US-Canada interest rate spreads lend further support to the USD.”