11 Jan 2016
USD/CAD well supported at 1.4050 – TDS
FXStreet (Edinburgh) - According to Ned Rumpeltin, FX Strategist at TD Securities, sellers could struggle to break below the 1.4050 area.
Key Quotes
“While the headline figures appeared positive we thought Canada’s December employment data carried an undercurrent of disappointment embedded in the details. In line with this, the bigger-picture outlook remains bearish for the CAD, however”.
“The 1.4050 mark in USDCAD should continue to provide a solid backstop and we expect spot to move higher to extend into the mid 1.40s”.
“We will be looking to Monday’s release of the BoC’s Business Outlook Survey as a potential catalyst for further CAD weakness”.
“There, the emphasis will be on future investment intentions and whether the energy sector is staring down the barrel of a major credit crunch”.
“Growing evidence of this, we think, adds to Canada’s negative macro backdrop and would broaden expectations for additional BoC stimulus”.
Key Quotes
“While the headline figures appeared positive we thought Canada’s December employment data carried an undercurrent of disappointment embedded in the details. In line with this, the bigger-picture outlook remains bearish for the CAD, however”.
“The 1.4050 mark in USDCAD should continue to provide a solid backstop and we expect spot to move higher to extend into the mid 1.40s”.
“We will be looking to Monday’s release of the BoC’s Business Outlook Survey as a potential catalyst for further CAD weakness”.
“There, the emphasis will be on future investment intentions and whether the energy sector is staring down the barrel of a major credit crunch”.
“Growing evidence of this, we think, adds to Canada’s negative macro backdrop and would broaden expectations for additional BoC stimulus”.