21 Jan 2014
Flash: USD/CAD 1.1000 is seen as shorting opportunity - TD Securities
FXstreet.com (San Francisco) - Shaun Osbourne, Chief FX Strategist at TD Securities commented that the mix in between Canadian manufacturing sales and BoC policy meeting announcement could provide shorting opportunities in the USD/CAD.
Key Quotes
"USDCAD is trading on a 1.10 handle for the first time since 2009 this morning as the bull run extends on aggressive buying from US banks through the London session. The Canadian manufacturing sales report today provides a nice curtain-raiser for the BoC policy meeting announcement Wednesday."
"The statement and MPR will reflect the dovish tone struck recently and has to acknowledge the weaker domestic data seen from Canada recently, however. The BoC policy meeting tomorrow is the big event of the week."
"The market is running fairly short CAD now (IMM data last Friday showed net speculative CAD shorts running up to 67.3k contracts, the biggest net short since early April 2013) with positioning juiced up by speculation that, contrary to our views above, the BoC will adopt an outright easing bias this week. That CAD risks a minor rebound in the event of a steady policy/message stance from the BoC."
"A pop in USDCAD to the mid/upper 1.10s post manufacturing sales might be an attract tactical shorting opportunity for BoC “disappointment” tomorrow (with a view to covering/going long USDCAD below 1.09)."
Key Quotes
"USDCAD is trading on a 1.10 handle for the first time since 2009 this morning as the bull run extends on aggressive buying from US banks through the London session. The Canadian manufacturing sales report today provides a nice curtain-raiser for the BoC policy meeting announcement Wednesday."
"The statement and MPR will reflect the dovish tone struck recently and has to acknowledge the weaker domestic data seen from Canada recently, however. The BoC policy meeting tomorrow is the big event of the week."
"The market is running fairly short CAD now (IMM data last Friday showed net speculative CAD shorts running up to 67.3k contracts, the biggest net short since early April 2013) with positioning juiced up by speculation that, contrary to our views above, the BoC will adopt an outright easing bias this week. That CAD risks a minor rebound in the event of a steady policy/message stance from the BoC."
"A pop in USDCAD to the mid/upper 1.10s post manufacturing sales might be an attract tactical shorting opportunity for BoC “disappointment” tomorrow (with a view to covering/going long USDCAD below 1.09)."