TD Research discusses the USD outlook and adopts a tactical neutral bias, while sees a scope for a relative underperformance of CAD over the next month
"The current data out of China has underscored that things have not bottomed yet. Meanwhile, our MRSI signal remains bearish on the EUR, reflecting a negative contribution from the growth story. Again, this backdrop doesn't lend a dominant theme to the broad USD, confining us to the recent ranges," TD notes.
"However, our detection of some mispricing of global macro themes alongside lopsided positioning and valuations do offer some interesting relative value trades. For the G10, this backdrop should usher in the relative underperformance of CAD over the next month while the aforementioned "value" plays should have more room to run. ," TD adds.