13 Jul 2015
USD/CAD to keep the range ahead of BoC
FXStreet (Edinburgh) - According to strategists at TD Securities, the pair could remain with a 1.2660/1.2780 range ahead of the BoC meeting on Wednesday.
Key Quotes
“Our daily fair value estimate for USDCAD stands at 1.2715 and over the past two weeks the market has piled into CAD shorts”.
“That was made evident with the latest IMM positioning where net CAD shorts jumped to –32.3k from –23.5k in the week before”.
“But this is still far from the lows observed in late 2013/early 2014. So, while the higher USDCAD trade is beginning to look a bit crowded, there is still room to run further”.
“We do not see much scope between now and the Bank meeting for USDCAD to move outside of the recent 1.2660/1.2780 range”.
Key Quotes
“Our daily fair value estimate for USDCAD stands at 1.2715 and over the past two weeks the market has piled into CAD shorts”.
“That was made evident with the latest IMM positioning where net CAD shorts jumped to –32.3k from –23.5k in the week before”.
“But this is still far from the lows observed in late 2013/early 2014. So, while the higher USDCAD trade is beginning to look a bit crowded, there is still room to run further”.
“We do not see much scope between now and the Bank meeting for USDCAD to move outside of the recent 1.2660/1.2780 range”.