7 Apr 2014
USD/CAD remains bullish - TD Securities
FXStreet (Barcelona) - Shaun Osbourne, Chief FX Strategist at TD Securities, underlines the bullish stance on USD/CAD despite the recent pullback.
Key Quotes
"USDCAD slipped a little further in the aftermath of last week’s better than expected headline gain in Canadian employment but funds are trading a little higher and off the lows so far today. The jobs data were fell into the “ok” category in our opinion—the headline number masked some weak internals (gains were driven mainly by part-time and government workers) - and did not alter the uneven but generally weaker trajectory for aggregate job growth seen in Canada in the past few months."
"The data combination Friday did not provide the boost for USDCAD that we expected. But there is no relief for the CAD in our opinion just yet."
"Canada has a competitive problem (last week’s trade data revealed still sluggish overall growth in Canadian exports); there’s little evidence yet that the “icing on the cake” of a weak exchange rate that Governor Poloz referred to with regard to exporters is having much impact just yet. We doubt Governor Poloz can—or will want to—change his tune too much on the exchange rate."
"From a short-term point of view, USDCAD looks a little more positive back above 1.10 as our session gets underway. The market has spent more than two weeks leaning on the downside of USDCAD after the market pushed back from the low 1.12 area in late March."
"A sustained recovery back above 1.1005/10 in our session this morning will provide a little more relief for the USD and possibly pave the way for a rebound to the 1.1075/00 area and help stabilize the recent track lower. We remain broadly positive on the outlook for USDCAD."
Key Quotes
"USDCAD slipped a little further in the aftermath of last week’s better than expected headline gain in Canadian employment but funds are trading a little higher and off the lows so far today. The jobs data were fell into the “ok” category in our opinion—the headline number masked some weak internals (gains were driven mainly by part-time and government workers) - and did not alter the uneven but generally weaker trajectory for aggregate job growth seen in Canada in the past few months."
"The data combination Friday did not provide the boost for USDCAD that we expected. But there is no relief for the CAD in our opinion just yet."
"Canada has a competitive problem (last week’s trade data revealed still sluggish overall growth in Canadian exports); there’s little evidence yet that the “icing on the cake” of a weak exchange rate that Governor Poloz referred to with regard to exporters is having much impact just yet. We doubt Governor Poloz can—or will want to—change his tune too much on the exchange rate."
"From a short-term point of view, USDCAD looks a little more positive back above 1.10 as our session gets underway. The market has spent more than two weeks leaning on the downside of USDCAD after the market pushed back from the low 1.12 area in late March."
"A sustained recovery back above 1.1005/10 in our session this morning will provide a little more relief for the USD and possibly pave the way for a rebound to the 1.1075/00 area and help stabilize the recent track lower. We remain broadly positive on the outlook for USDCAD."