USDCAD at a critical juncture – TDS

By FXStreet FXStreet (Delhi) – Research Team at TDS, note that the USDCAD touched the 1.2900 mark, which is effectively the post-July BoC level but is now trading broadly in line with our fair value estimate of 1.2870.

Key Quotes

“USDCAD should hold at these levels but a break below the figure would be a significant psychological barrier that would open downside potential to 1.2780/1.2800. At these levels does initiating USDCAD longs look more attractive from a medium-term perspective.”

“But as we noted here yesterday, USDCAD may become a more benign currency pair with much of the positioning washout having occurred already and now sitting closer to neutral. Indeed, in this morning’s USD selloff, the CAD is lagging the other commodity-linked currencies in outperformance.”
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Source:: FX Street