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20 May 2015
USD/CAD still targets 1.30 year-end – TDS
FXStreet (Edinburgh) - Strategists at TD Securities still believe the pair could reach the 1.3000 level towards the end of 2015.
Key Quotes
“We think the bulk of the upside for USDCAD from here will be concentrated in H2 because that’s when policy divergence pressures are likely to mount one way or the other”.
“Either the Fed tightens as the US economy recovers (and the BoC stays on hold) or the absence of stronger growth in the US will draw attention back to BoC policy settings”.
“But USDCAD may be making some tentative steps towards our 1.30 year end target already and we think long positions are warranted, especially after today's rise above 1.22 which strongly suggests an important low is in now at 1.19”.
Key Quotes
“We think the bulk of the upside for USDCAD from here will be concentrated in H2 because that’s when policy divergence pressures are likely to mount one way or the other”.
“Either the Fed tightens as the US economy recovers (and the BoC stays on hold) or the absence of stronger growth in the US will draw attention back to BoC policy settings”.
“But USDCAD may be making some tentative steps towards our 1.30 year end target already and we think long positions are warranted, especially after today's rise above 1.22 which strongly suggests an important low is in now at 1.19”.