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5 Feb 2015
US-Canadian interest rate favouring greenback - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that US-Canadian interest rate differentials moving in favour of USD.
Key Quotes:
"while swings in energy prices have dominated the headlines in recent weeks and provided significant impetus for shifts in USD/CAD, US-Canadian interest rate differentials are slowly but surely moving in a very USD-supportive fashion."
"Rate spreads are positive for the USD (versus the CAD) across the yield curve and constitute a significant source of support for USD/CAD."
"Our forecasts for US and Canadian 2y bond yields alone suggests USDCAD could move towards 1.40 late in 2016."
"We suggest long USD/CAD at current spot (1.2559), targeting 1.30 (risking 1.2475)."
Key Quotes:
"while swings in energy prices have dominated the headlines in recent weeks and provided significant impetus for shifts in USD/CAD, US-Canadian interest rate differentials are slowly but surely moving in a very USD-supportive fashion."
"Rate spreads are positive for the USD (versus the CAD) across the yield curve and constitute a significant source of support for USD/CAD."
"Our forecasts for US and Canadian 2y bond yields alone suggests USDCAD could move towards 1.40 late in 2016."
"We suggest long USD/CAD at current spot (1.2559), targeting 1.30 (risking 1.2475)."