Back
5 Jan 2016
Extended upside potential in USD/CAD - TDS
FXStreet (Guatemala) - Analysts at TD Securities noted that 2015 was a bad year for the CAD.
Key Quotes:
"It was the worst performing G10 currency versus the USD, in line with some of its EM peers.
We see additional risks of acute pressures on the CAD
early this year driven by a corporate cash crunch, a non-trivial probability of further monetary easing, seasonal underperformance and subdued oil outlook.
We see extended upside risks to our Q1 and Q2 forecast
of 1.40 and 1.37. Tighten trailing stops to 1.3700/20 for an initial target of 1.43. We also see value in implementing a 1.43/1.45 3-month USD/CAD call spread."
Key Quotes:
"It was the worst performing G10 currency versus the USD, in line with some of its EM peers.
We see additional risks of acute pressures on the CAD
early this year driven by a corporate cash crunch, a non-trivial probability of further monetary easing, seasonal underperformance and subdued oil outlook.
We see extended upside risks to our Q1 and Q2 forecast
of 1.40 and 1.37. Tighten trailing stops to 1.3700/20 for an initial target of 1.43. We also see value in implementing a 1.43/1.45 3-month USD/CAD call spread."