24 Mar 2015
USD/CAD: Break under 1.2360 a tactical short opportunity - TDS
FXStreet (Bali) - Shaun Osborne, Head of Global FX Strategy at TDS, notes that a break under 1.2360 is a “go with” move for an opportunistic, tactical short USDCAD position.
Key Quotes
"But we remain bullish on the outlook for USDCAD from a longer-term perspective; sluggish growth, soft inflation and weak labour markets in Canada will keep the BoC on hold (at least) through the balance of this year in contrast to the tightening moves we expect from the US."
"A dip below 1.20 through Q2 would give investors an attractive opportunity to reverse short USD positions or initiate fresh USDCAD longs. After all, the second half of the year is better for USDCAD seasonally as well."
Key Quotes
"But we remain bullish on the outlook for USDCAD from a longer-term perspective; sluggish growth, soft inflation and weak labour markets in Canada will keep the BoC on hold (at least) through the balance of this year in contrast to the tightening moves we expect from the US."
"A dip below 1.20 through Q2 would give investors an attractive opportunity to reverse short USD positions or initiate fresh USDCAD longs. After all, the second half of the year is better for USDCAD seasonally as well."