USD/CAD key supports around 1.3100

Technical Analysis

Author: Eamonn Sheridan | cad

Westpac are looking under 1.3100 for buy opportunities in USD/CAD

  • buying /CAD around 1.3085
  • targeting 1.3285
  • stop 1.3025
Citing:
  • CAD strongest G10 currency in June
  • prospects for further USD/CAD declines … tougher ... into 1.3000
  • area coinciding with a range of key supports

And:
  • Bank of Canada rate cut pricing remains very guarded
  • only 11bp in cuts priced to Dec 2019
  • less than the Fed (-64bp), the RBNZ (-40bp), the RBA (-22bp), the ECB (-16bp) the SNB (-18bp) and the BoE (-14bp)
  • Firming inflation and a decent BoC business survey will encourage the BoC next week to reiterate an optimistic ton
  • but global risks have grown and the Bank may well amplify these concerns
Risks include:
  • Bank of Canada paying little attention to global risks
  • Canadian employment data
  • FOMC minutes
  • Powell leaning strongly dovish 

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