USDCAD: Stabilized for now - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Research Team at TDS, suggest that the USDCAD is trading stable now ahead of the September CPI release.

    Key Quotes

    “Yesterday we noted that we are more confident in a buy on dip strategy where we would add longs towards the 1.3080 level– USDCAD has found modest support around the 1.3025/50 zone after rejecting the 50% Fibo level (1.3145) from the multi-year high on September 30th.”

    “Spot trades above our fair value estimate of 1.2925 but note that it has been gradually nudging higher. Today’s CPI report (September) is expected to be flat on the headline measure but a touch softer than the market at 0.2% m/m (market: 0.3%).”

    “We do not expect the inflation numbers to have much of an impact on USDCAD as the Bank of Canada is more focused on activity measures and less observable rates of underlying inflation. Recall that the BoC has repeatedly noted that underlying inflation sits at 1.5-1.7% y/y.”
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