24 Jun 2015
USD/CAD neutral short-term – Scotiabank
FXStreet (Edinburgh) - In the view of Eric Theoret, Currency Strategist at Scotiabank, the pair keeps the neutral bias in the near term.
Key Quotes
“The 2Y U.S.-Canada yield spread has widened steadily since last Thursday and hints to upside risk for USDCAD”.
“Meanwhile, options prices have moved in the opposite direction and suggest a waning desire to protect against USDCAD gains with risk reversals dropping to 9-month lows”
“Candles on June 18 (hammer) and June 23 (shooting star) hint to a near term range with support around 1.2120 and resistance around 1.2380. Further resistance is expected at the 100 day MA 1.2394. We remain biased to near term gains”.
Key Quotes
“The 2Y U.S.-Canada yield spread has widened steadily since last Thursday and hints to upside risk for USDCAD”.
“Meanwhile, options prices have moved in the opposite direction and suggest a waning desire to protect against USDCAD gains with risk reversals dropping to 9-month lows”
“Candles on June 18 (hammer) and June 23 (shooting star) hint to a near term range with support around 1.2120 and resistance around 1.2380. Further resistance is expected at the 100 day MA 1.2394. We remain biased to near term gains”.