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23 Apr 2014
1.1100 on the card for CAD? - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities noted that the dull activity as holiday-thinned trading crimped activity and interest of late. Looking specifically at CAD, they suggest a push towards 1.1100.
Key Quotes:
"The Keystone XL recommendation delay news that broke Friday—US State Department officials said that a decision would now have to await the outcome of local legal proceedings in Nebraska—hurt Transcanada’s share price Monday so some catch up in spot might be seen today."
"Alternatively, investors might just be waiting to see what the data run over the next few weeks provide us with in terms of new inputs into the economic outlook. There are signs that the weather-related “soft patch” in the US data releases may be reversing and we would expect a bounce in the US data’s undertone to provide some support to the USD (and nudge yields a little higher)."
"In Canada, wholesale trade data today may not be much of a market mover. But we do think there is a risk that tomorrow’s retail sales data disappoints market expectations and that is likely to weigh on the CAD. Soft retail sales data will encourage USD/CAD to push somewhat higher—a push towards the upper 1.10 area might be on the cards if the USD can get a little more obvious traction above 1.1030."
Key Quotes:
"The Keystone XL recommendation delay news that broke Friday—US State Department officials said that a decision would now have to await the outcome of local legal proceedings in Nebraska—hurt Transcanada’s share price Monday so some catch up in spot might be seen today."
"Alternatively, investors might just be waiting to see what the data run over the next few weeks provide us with in terms of new inputs into the economic outlook. There are signs that the weather-related “soft patch” in the US data releases may be reversing and we would expect a bounce in the US data’s undertone to provide some support to the USD (and nudge yields a little higher)."
"In Canada, wholesale trade data today may not be much of a market mover. But we do think there is a risk that tomorrow’s retail sales data disappoints market expectations and that is likely to weigh on the CAD. Soft retail sales data will encourage USD/CAD to push somewhat higher—a push towards the upper 1.10 area might be on the cards if the USD can get a little more obvious traction above 1.1030."