Credit Suisse discusses its trading bias for USD/CAD over the coming weeks.
"We see limited potential for near-term improvement in rates support for CAD, which makes our 1.2150 USDCAD Q3 target a very long shot. We think a more cautious 1.2450 target is now appropriate. From a tactical trading standpoint, we look for USD dynamics to drive USDCAD price action near-term, and expect dips below 1.2450 to find buyers, unless oil prices rebound meaningfully," CS notes.
'The build-up in topside protection however likely limits USDCAD upside risks to around 1.28. Above that level, we think that USDCAD shorts with a 1.2450 target and 1.2950 stop loss would be attractive," CS adds.