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USD/CAD risks dipping to 1.20 – TDS

FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, views that risks for a USD/CAD move towards 1.20 might increase if BoC fails to cut rates next week.

Key Quotes

“In the event that the BoC fails to deliver a rate cut next week, we have to think USDCAD risks slipping towards 1.20—or a little below.”

“Uncertainties and price action suggest caution is warranted on the direction of USDCAD near-term at least.”

“We would rather look to sell USDCAD modest rallies near-term and feel that USD hedges should be increased somewhat as we get into what is usually a more volatile and weaker phase of the year for the big dollar.”

Mexico Accumulated Current Account/GDP increased to 2.1% in 4Q from previous 2%

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