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27 Aug 2015
USDCAD: Trading the US Q2 GDP report – TDS
FXStreet (Mumbai) - Analysts at TD Securities believe that disappointing US growth figures would open up downside risks for the USD/CAD pair towards 1.3150 levels.
Key Quotes:
“USDCAD remains stuck in a 1.3200/1.3350 range. At time of writing, funds have broken below but unless the second estimate of Q2 US GDP materially disappoints, we expect dips to the figure to be bought.”
“A significant disappointment would open up downside potential to the 1.3150 level we think.”
“Our expectation for the second estimate is 3.3% q/q annualized (market: 3.2%) though the durable goods orders report earlier this week contained positive revisions which suggest some upside risk to our forecast.”
“Consequently, we are biased to see USDCAD rally from here and move away from our daily value estimate of 1.3095.”
“There is no data major economic data in Canada this week so we look to the Q2 GDP report (Tuesday) and trade balance (Thursday) to frame Bank of Canada rate expectations.”
Key Quotes:
“USDCAD remains stuck in a 1.3200/1.3350 range. At time of writing, funds have broken below but unless the second estimate of Q2 US GDP materially disappoints, we expect dips to the figure to be bought.”
“A significant disappointment would open up downside potential to the 1.3150 level we think.”
“Our expectation for the second estimate is 3.3% q/q annualized (market: 3.2%) though the durable goods orders report earlier this week contained positive revisions which suggest some upside risk to our forecast.”
“Consequently, we are biased to see USDCAD rally from here and move away from our daily value estimate of 1.3095.”
“There is no data major economic data in Canada this week so we look to the Q2 GDP report (Tuesday) and trade balance (Thursday) to frame Bank of Canada rate expectations.”