9 Jul 2015
USD/CAD outlook into Canadian employment report – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities, view tomorrows employment report as an opportunity to position into next week’s BoC meeting, and suggest to buy USD/CAD dips, if any.
Key Quotes
“USDCAD looks steady this morning but has had trouble in trying to punch above the 1.2760/70 area yesterday.”
“Our bias heading into today’s session would be for funds to trade with little inspiration—which is not trading far off from our daily FV estimate of 1.2711—as we think the market is looking to tomorrow’s June employment report as the next major catalyst to determine whether growing calls for the Bank of Canada to cut at next Wednesday’s meeting are appropriate. We note that monthly changes in employment should not be viewed as altering prospects for the policy decision but certainly the optics to provide an additional “insurance” cut would improve.”
“At this point, the employment report should be viewed as an opportunity to position for next week’s meeting. We look for a decline but given the employment survey’s notorious statistical noise, we would view a positive surprise as an opportunity to buy the dip.”
Key Quotes
“USDCAD looks steady this morning but has had trouble in trying to punch above the 1.2760/70 area yesterday.”
“Our bias heading into today’s session would be for funds to trade with little inspiration—which is not trading far off from our daily FV estimate of 1.2711—as we think the market is looking to tomorrow’s June employment report as the next major catalyst to determine whether growing calls for the Bank of Canada to cut at next Wednesday’s meeting are appropriate. We note that monthly changes in employment should not be viewed as altering prospects for the policy decision but certainly the optics to provide an additional “insurance” cut would improve.”
“At this point, the employment report should be viewed as an opportunity to position for next week’s meeting. We look for a decline but given the employment survey’s notorious statistical noise, we would view a positive surprise as an opportunity to buy the dip.”