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8 Sep 2015
USD/CAD bullish near-term – Scotiabank
FXStreet (Edinburgh) - Currency Strategist at Scotiabank Eric Theoret reiterated the bullish view on the pair in the near term.
Key Quotes
“This week’s highlight for CAD lies with Wednesday’s BoC policy decision and statement release (no MPR or press conference), with risk to the statement tone as we consider the material improvement in Canada’s non energy export performance from June and July”.
“Relative policy considerations are likely to be CAD supportive, given the continued softening in expectations for BoC easing over the next 12 months—now pricing a 39% chance of a 25bpt rate cut, halving from 78% in late August”.
“Momentum signals are conflicted as USDCAD flirts with near term support around 1.3250. The 21 day MA also remains an important support level, having restrained USDCAD declines since mid-August”.
“USDCAD has not made a fresh high since August 25th, its recent gains restrained above 1.3200 and 1.3220”.
Key Quotes
“This week’s highlight for CAD lies with Wednesday’s BoC policy decision and statement release (no MPR or press conference), with risk to the statement tone as we consider the material improvement in Canada’s non energy export performance from June and July”.
“Relative policy considerations are likely to be CAD supportive, given the continued softening in expectations for BoC easing over the next 12 months—now pricing a 39% chance of a 25bpt rate cut, halving from 78% in late August”.
“Momentum signals are conflicted as USDCAD flirts with near term support around 1.3250. The 21 day MA also remains an important support level, having restrained USDCAD declines since mid-August”.
“USDCAD has not made a fresh high since August 25th, its recent gains restrained above 1.3200 and 1.3220”.