Welcome Guest:
Sign Up
Derived real-time data in partnership with:
Thomson Reuters
Feb 12 - 11:00 AM
USD/CAD: Path Of Least Resistance Is Higher For USD/CAD'; Where To Buy Dips - TD
First appeared on eFXplus on Feb 12 - 09:10 AM

TD Research discusses USD/CAD outlook and notes that for this week, the loonie will be closely watching US data, risk appetite and the broader trends in the dollar.

"Given that our measure of data surprises momentum is starting to top out and the market is now revising down its views on Canadian growth, we think the path of least resistance is higher for USDCAD. Along with the green shoots of a spring bounce in the dollar, oil prices could start to turn over, removing another source of CAD support," TD argues. 

"We prefer outright long exposure in USDCAD and look for a test of the 200dma soon. We look to look to use any dips towards the figure at 1.25 to add fresh long exposure.This backdrop also favors buying into EURCAD dips, owing to the strong uptrend in the cross," TD advises. 

TD Bank Research