USD/CAD seen higher, EUR/CAD could test 1.40 – TDS

By FXStreet FXStreet (Edinburgh) – Strategists at TD Securities see USD/CAD climbing further backed by policy divergence, while CAD is expected to pick up pace vs. the euro.

Key Quotes

“In a week that is particularly dense with data releases and event risks, both for Canada and the world at large, the Q3 GDP report will help set the overall tone”.

“Our broadly positive expectation for this month’s growth reading should be constructive for the CAD, but we prefer to be selective in where we pursue opportunities for strength”.

“This is particularly the case in relation to the USD, as we expect the greenback to remain in a solid uptrend ahead of the 16 December FOMC meeting”.

“Instead, we prefer to play for CAD strength against currencies where the corresponding central bank remains in active easing mode”.

“With the ECB likely to deliver a comprehensive package of additional stimulus this week, we see notable downside risks to EURCAD. We think a clear break below 1.4075 opens the door for a move below 1.40 with potential to extend down to test support around 1.3750 in the days ahead”.
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Source:: FX Street