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20 May 2015
USD/CAD preparing for a more sustained increase – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities maintain their bullish stance on USD/CAD, targeting 1.2850 levels.
Key Quotes
“Beyond what we think is a bit of a noisy period for trading until the June FOMC meeting, we think we are setting up for a more sustained increase in USDCAD.”
“We are inclined to add long USDCAD positions above 1.22, and target 1.2850 risking 1.21.”
“In the event we are stopped out, we would look to buy the dip especially if we near the 1.19 figure. The low 1.19s proved to be solid support for USDCAD and in light of what appears to be a moderately bullish turn for USDCAD, we are closing our long CADJPY position for a small gain. We primarily viewed the latter trade as an opportunity to bet on early reflation by the Bank of Japan last month with limited downside risk at the time.”
Key Quotes
“Beyond what we think is a bit of a noisy period for trading until the June FOMC meeting, we think we are setting up for a more sustained increase in USDCAD.”
“We are inclined to add long USDCAD positions above 1.22, and target 1.2850 risking 1.21.”
“In the event we are stopped out, we would look to buy the dip especially if we near the 1.19 figure. The low 1.19s proved to be solid support for USDCAD and in light of what appears to be a moderately bullish turn for USDCAD, we are closing our long CADJPY position for a small gain. We primarily viewed the latter trade as an opportunity to bet on early reflation by the Bank of Japan last month with limited downside risk at the time.”