USD/CAD door open for a test of 1.37 by year-end – TDS

FXStreet (Edinburgh) - Strategist Ned Rumpeltin at TD Securities believes spot could visit the 1.37 handle in the last months of the current year.

Key Quotes

“We have long argued that the next major up-leg will require a policy induced catalyst from the Federal Reserve”.

“We remain in the September rate hike camp but even if a hike did not occur, we would still look for the BoC to lean against a material appreciation in the CAD”.

“This is one of the reasons why we think the balance of risks tilts towards higher USDCAD over the coming months and is one of the underlying motivations behind our 1.37 target at the turn of the year”.

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