FXStreet (Edinburgh) – Shaun Osborne, head of Global FX Strategy at TD Securities, recommends buying the dips in the pair, targeting 1.28.
“USDCAD is trading above our fundamental fair value estimate (1.2342) this morning but weak data is liable to give funds a boost; note US/Canada 5-year spreads continue to move favorably for the USD, with the spread widening out to +58bps this week, the widest since early April”.
“At the very least, we see limited downside for USDCAD at the moment; we remain long—looking for 1.28—and would favour opening/adding to USD longs on minor dips to the mid 1.24s”.
“Loss of support at 1.2435/40 intraday would signal scope for modest weakness to the high 1.23s where we think stronger technical support should emerge”.
Shaun Osborne, head of Global FX Strategy at TD Securities, recommends buying the dips in the pair, targeting 1.28…
(Market News Provided by FXstreet)