12 Aug 2015
USD/CAD neutral near-term, bullish in the longer run – TDS
FXStreet (Edinburgh) - Strategists at TD Securities have reiterated their bullish stance on spot in the longer term horizon.
Key Quotes
“The big question is whether the RMB devaluation will get in the way of a Fed hike in September”.
“Front-end probabilities have ratcheted lower since last Friday’s payrolls where the September meeting was penciled in at about a 60% chance of a hike to about 40% now”.
“We do not think the events take a September hike off the table and instead it will be prudent for the Fed to see how events unfold”.
“We would be hesitant to chase the move lower in USDCAD and we think playing the range in USDCAD for the day ahead is appropriate, though we prefer to be neutral. Longer-term, we remain USDCAD bulls”.
Key Quotes
“The big question is whether the RMB devaluation will get in the way of a Fed hike in September”.
“Front-end probabilities have ratcheted lower since last Friday’s payrolls where the September meeting was penciled in at about a 60% chance of a hike to about 40% now”.
“We do not think the events take a September hike off the table and instead it will be prudent for the Fed to see how events unfold”.
“We would be hesitant to chase the move lower in USDCAD and we think playing the range in USDCAD for the day ahead is appropriate, though we prefer to be neutral. Longer-term, we remain USDCAD bulls”.