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19 Feb 2014
Flash: USD/CAD longs favoured - TD Securities
FXStreet (Barcelona) - Shaun Osbourne, Chief FX Strategist at TD Securities said the window for the CAD to extend its rebound from the 1.12+ levels struck at the end of last month may be closing. We think risk reward is starting to favour USD longs again.
Key Quotes:
"Firstly, the correction lower has taken back about half of the January rally in USD/CAD and the market is nearing key supports in the form of the 50% retracement support derived from that move and the 40-day MA (see daily chart, above)”.
“Secondly, the looming run of tier 1 Canadian data are likely to make for poor reading; we look for weak December retail sales (albeit weather related) and for January CPI data to show no significant pick up in inflation from December."
Key Quotes:
"Firstly, the correction lower has taken back about half of the January rally in USD/CAD and the market is nearing key supports in the form of the 50% retracement support derived from that move and the 40-day MA (see daily chart, above)”.
“Secondly, the looming run of tier 1 Canadian data are likely to make for poor reading; we look for weak December retail sales (albeit weather related) and for January CPI data to show no significant pick up in inflation from December."