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17 Apr 2015
USD/CAD near-term target at 1.19/1.20 area – TDS
FXStreet (Barcelona) - FX Strategists at TD Securities believe that USD/CAD risk remains biased to the downside into today’s Canadian CPI and retail sales data releases.
Key Quotes
“USDCAD remains under pressure this morning. We think today will be yet another active session that will pull funds much lower from here with a data heavy data day in front of us with the simultaneous release of Canadian CPI (March) and retail sales (February).”
“We expect retail sales to advance by 0.8% m/m (market: +0.5%) off the back of sales at gasoline stations thanks to a sharp jump in prices at the pump (which should also leave ex.-autos sales higher by 0.7% m/m, in line with consensus). Beyond the gasoline sector, sales may be much more subdued in keeping with the decline in retailer sentiment on the month so we think the risk around our forecast is for retail sales to be softer.”
“Nonetheless, we view the risk around USDCAD as asymmetric but biased to the downside and would look to sell into a rally above the 1.22 level.”
“Over the near-term, we still target 1.19/1.20 level where there is solid support.”
Key Quotes
“USDCAD remains under pressure this morning. We think today will be yet another active session that will pull funds much lower from here with a data heavy data day in front of us with the simultaneous release of Canadian CPI (March) and retail sales (February).”
“We expect retail sales to advance by 0.8% m/m (market: +0.5%) off the back of sales at gasoline stations thanks to a sharp jump in prices at the pump (which should also leave ex.-autos sales higher by 0.7% m/m, in line with consensus). Beyond the gasoline sector, sales may be much more subdued in keeping with the decline in retailer sentiment on the month so we think the risk around our forecast is for retail sales to be softer.”
“Nonetheless, we view the risk around USDCAD as asymmetric but biased to the downside and would look to sell into a rally above the 1.22 level.”
“Over the near-term, we still target 1.19/1.20 level where there is solid support.”