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18 Oct 2013
Flash: USD/CAD bullishness would be tested – Scotiabank
FXstreet.com (Edinburgh) -The USD/CAD is testing the boundaries of the psychological level at 1.0300 on Friday, ahead if the key inflation data in the Canadian economy. Chief Strategist Camilla Sutton at Scotiabank noted the upside sentiment around the pair may be shrinking.
Key quotes
“An important driver of CAD has been capital market flows into Canada. However, the six‐month moving average of international securities transactions has been trending lower”.
“As global FX reserves continue to rise (currently at $11.1trn) CAD is likely to continue to benefit from diversification flows. Accordingly, even as we expect CAD positive flows to help stabilize the currency and limit its 2014 weakness”.
“The upward USDCAD pressure is beginning to fade and technical studies are turning more mixed. Spot is trading very close to the average ytd level of 1.0328, which suggest that the
drivers continue to be fairly mixed”
Key quotes
“An important driver of CAD has been capital market flows into Canada. However, the six‐month moving average of international securities transactions has been trending lower”.
“As global FX reserves continue to rise (currently at $11.1trn) CAD is likely to continue to benefit from diversification flows. Accordingly, even as we expect CAD positive flows to help stabilize the currency and limit its 2014 weakness”.
“The upward USDCAD pressure is beginning to fade and technical studies are turning more mixed. Spot is trading very close to the average ytd level of 1.0328, which suggest that the
drivers continue to be fairly mixed”