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16 Jun 2015
USD/CAD: downside risks ahead – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities see a decline ahead in US Housing starts data which might pull USD/CAD lower.
Key Quotes
“Like most currency pairs, USDCAD is in a wait-and-see mode ahead of tomorrow’s FOMC meeting so price action today will most probably be stale save for the little on the data calendar today. Canada’s April international securities report that is likely to show a moderation from the $22b inflow from foreign investors.”
“US housing starts for May are expected to show a sizable decline from April’s surge and if our downside risk is realized should pull USDCAD (temporarily) lower and further away from our daily model estimate (~1.2460).”
“While a cautiously optimistic Fed at tomorrow’s announcement may leave USDCAD initially higher, the prospect of decent Canadian data on Friday’s CPI/retail sales reports should prove supportive for the CAD so we are comfortable in fading the FV estimate.”
Key Quotes
“Like most currency pairs, USDCAD is in a wait-and-see mode ahead of tomorrow’s FOMC meeting so price action today will most probably be stale save for the little on the data calendar today. Canada’s April international securities report that is likely to show a moderation from the $22b inflow from foreign investors.”
“US housing starts for May are expected to show a sizable decline from April’s surge and if our downside risk is realized should pull USDCAD (temporarily) lower and further away from our daily model estimate (~1.2460).”
“While a cautiously optimistic Fed at tomorrow’s announcement may leave USDCAD initially higher, the prospect of decent Canadian data on Friday’s CPI/retail sales reports should prove supportive for the CAD so we are comfortable in fading the FV estimate.”