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16 Jul 2015
Buy the pullbacks in USD/CAD, targets 1.33 – TDS
FXStreet (Edinburgh) - Strategists at TD Securities recommend buying the pair on occasional pullbacks.
Key Quotes
“The immediate impact of the cut on the currency was dramatic”.
“USDCAD instantaneously leapt higher from the 1.2780 area to 1.29 in a matter of seconds”.
“We see little scope for a material dip from here but getting long at these levels is difficult”.
“Even though we look for a sustained break above 1.30 over the coming six months (1.33 by yearend) we would wait for a pullback first”.
“We think the next upleg in USDCAD will need to come from a Fed hike and our US strategists are more confident that the Fed will be tightening policy in the fall following hawkish comments from Yellen’s semi-annual testimony yesterday”.
Key Quotes
“The immediate impact of the cut on the currency was dramatic”.
“USDCAD instantaneously leapt higher from the 1.2780 area to 1.29 in a matter of seconds”.
“We see little scope for a material dip from here but getting long at these levels is difficult”.
“Even though we look for a sustained break above 1.30 over the coming six months (1.33 by yearend) we would wait for a pullback first”.
“We think the next upleg in USDCAD will need to come from a Fed hike and our US strategists are more confident that the Fed will be tightening policy in the fall following hawkish comments from Yellen’s semi-annual testimony yesterday”.