27 Feb 2015
USD/CAD keeping the range – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, gives the outlook for USD/CAD, noting that with markets heavily positioned for next week’s developments, USD, commodity prices and technical factors will drive the pair near-term.
Key Quotes
“With no domestic data on tap and the market perhaps inclined to avoid getting too aggressively positioned ahead of next week’s developments, the big dollar, commodities and technical factors will drive the CAD near-term.”
“We are not sure those first two factors are going to provide much inspiration either; as we noted above, the broader USD trend looks sideways and oil prices, while dipping sharply yesterday, are stable so far today."
“From a technical perspective, it is clear that the bull trend in USDCAD has moderated over the past month—both in terms of price action and the oscillator signals on the intraday and daily charts.”
“Price action yesterday was positive (bullish outside range off support in the upper 1.23s) so we are inclined to look for a slightly better bid tone to emerge into the end of the week. That has not been evident overnight so far but intraday gains above 1.25 should help pull funds back to 1.2550/60.”
“The broader range looks to be 1.2360/2.2660 for the moment.“
Key Quotes
“With no domestic data on tap and the market perhaps inclined to avoid getting too aggressively positioned ahead of next week’s developments, the big dollar, commodities and technical factors will drive the CAD near-term.”
“We are not sure those first two factors are going to provide much inspiration either; as we noted above, the broader USD trend looks sideways and oil prices, while dipping sharply yesterday, are stable so far today."
“From a technical perspective, it is clear that the bull trend in USDCAD has moderated over the past month—both in terms of price action and the oscillator signals on the intraday and daily charts.”
“Price action yesterday was positive (bullish outside range off support in the upper 1.23s) so we are inclined to look for a slightly better bid tone to emerge into the end of the week. That has not been evident overnight so far but intraday gains above 1.25 should help pull funds back to 1.2550/60.”
“The broader range looks to be 1.2360/2.2660 for the moment.“