7 Apr 2015
USD/CAD rallies might fade towards 1.25 area – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities note that the developments in spread and crude prices might cap the topside for USD/CAD.
Key Quotes
“Our fair value estimate for USDCAD this morning is influenced by the developments in spreads and crude prices noted above and signals an equilibrium estimate of 1.2355 this morning (the lowest FV estimate since the BoC’s surprise rate cut in late January, in fact) and we continue to think there is downside potential in USDCAD at the moment.”
“Intraday, look for the market to fade rallies to the 1.25 area.”
“We spot strong technical resistance at 1.2525/50 and key support at 1.2360—within reach, based on our FV estimate.”
“EURCAD trades heavily again this morning as investors perhaps cast a cautious eye towards Greece (due to repay an IMF loan Thursday). Look for EURCAD losses to pick up below 1.3530.”
Key Quotes
“Our fair value estimate for USDCAD this morning is influenced by the developments in spreads and crude prices noted above and signals an equilibrium estimate of 1.2355 this morning (the lowest FV estimate since the BoC’s surprise rate cut in late January, in fact) and we continue to think there is downside potential in USDCAD at the moment.”
“Intraday, look for the market to fade rallies to the 1.25 area.”
“We spot strong technical resistance at 1.2525/50 and key support at 1.2360—within reach, based on our FV estimate.”
“EURCAD trades heavily again this morning as investors perhaps cast a cautious eye towards Greece (due to repay an IMF loan Thursday). Look for EURCAD losses to pick up below 1.3530.”