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5 Aug 2014
USD/CAD may continue to consolidate near-term - TD Securities
FXStreet (Łódź) - The TD Securities team of analysts point out that that following the Monday losses USD/CAD is climbing again today and they expect it could keep on consolidating in the near-term.
Key quotes
"For the CAD, focus this week will fall on Friday’s employment data."
"Early calls are for a 22k gain in jobs in a rebound from the disappointing data seen in June—essentially the catalyst for the turn up in USD/CAD from the 1.06 area."
"But betting on a jobs bounce is the right thing to do as back to back job declines are rare, after all. So it is the scale of the gain that will drive the market reaction in all likelihood; a modest rise in jobs would likely do little to boost the CAD."
"Price action late last week tested, and showed some signs of weakness against, retracement resistance in the mid 1.09s."
"We continue to believe that there is limited scope for USD/CAD to weaken at present, however."
"The broader technical trend has turned more obviously bullish USD/CAD in the past week or so—trend momentum has strengthened and the USD has sustained (on a weekly close basis) gains through some key resistance points (e.g.., the 200-day MA)."
Key quotes
"For the CAD, focus this week will fall on Friday’s employment data."
"Early calls are for a 22k gain in jobs in a rebound from the disappointing data seen in June—essentially the catalyst for the turn up in USD/CAD from the 1.06 area."
"But betting on a jobs bounce is the right thing to do as back to back job declines are rare, after all. So it is the scale of the gain that will drive the market reaction in all likelihood; a modest rise in jobs would likely do little to boost the CAD."
"Price action late last week tested, and showed some signs of weakness against, retracement resistance in the mid 1.09s."
"We continue to believe that there is limited scope for USD/CAD to weaken at present, however."
"The broader technical trend has turned more obviously bullish USD/CAD in the past week or so—trend momentum has strengthened and the USD has sustained (on a weekly close basis) gains through some key resistance points (e.g.., the 200-day MA)."