USD/CAD buy the dips towards 1.2310 – Westpac

FXStreet (Edinburgh) – In the view of strategists at Westpac, the near term stance of the pair remains constructive.

Key Quotes

“Key commodity prices are either travelling sideways at best (crude oil) or are in a clear downtrend (copper), hardly appetising atmospherics for CAD”.

“The latest PMI and jobs data was constructive but the “hard activity data” for Q2 is so far proving to be mostly underwhelming, casting some doubt on Poloz’ hopes for a strong recovery from the Q1 slump: April manufacturing sales slipped -2.1% while April retail trade fell -0.1%”.

“Still favour a run at 1.3000+ at some point in H2 as Fed liftoff becomes reality and policy measures to stem China’s slowdown ultimately prove ineffectual”.

“For the time being the USD/CAD is a range trade with dips into 1.231 an ideal location for fresh longs”.

“Short term momentum beginning to rise. The break above 1.2360 has increased short term upside risk”.

In the view of strategists at Westpac, the near term stance of the pair remains constructive…

(Market News Provided by FXstreet)