USD/CAD could test ytd highs at 1.2835 – TDS

FXStreet (Edinburgh) - Strategists at TD Securities believe the pair could challenge 2015 tops in the 1.2835 level in the near term.

Key Quotes

“Price action in USDCAD has been constructive over the past 24hrs ahead of tomorrow’s key Bank of Canada Fixed Announcement Date (FAD)”.

USDCAD has pushed through key resistance of 1.2760/80 to punch above the figure off the back of a dip in oil prices following the Iran deal overnight”.

“With US retail sales the major economic highlight in North America, we do see a small risk that we could test the March 18th high of 1.2835 only on a significant upside surprise in the data. We ultimately think this is a risk for tomorrow with the BoC meeting”.

“We are broadly in line with the market in looking for 0.3-0.5% monthly increases across the various retail sales measures. We do not think a disappointment will do much to undermine funds at this point”.

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