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2 Jun 2014
USD/CAD likely to consolidate either side of 1.1000 - Scotiabank
FXStreet (Córdoba) - Camilla Sutton, analyst at Scotiabank commented that the BoC is likely to reiterate its neutral stance next Wednesday, which would support a range bound environment for USD/CAD either side of 1.1000.
Key Quotes
“BoC is likely to reiterate its neutral stance, emphasizing that interest rates are on hold for an extended period. Friday’s Q1 GDP was disappointing, with soft exports and business investment suggesting that the anticipated shift in the economy continues to prove elusive. However with headline inflation at 2% it will be hard for the BoC to signal anything dovish”.
“The market is pricing in a balanced outlook for interest rates, with no probability of a hike or cut priced in. For CAD this is likely to support a somewhat range bound environment; with USD/CAD either side of 1.10”.
“USD/CAD short‐term technicals: mixed—and range bound warns that for near‐term traders there is better risk/reward elsewhere. Support lies at the recent low of 1.0814 while resistance lies at the recent high of 1.0942”.
Key Quotes
“BoC is likely to reiterate its neutral stance, emphasizing that interest rates are on hold for an extended period. Friday’s Q1 GDP was disappointing, with soft exports and business investment suggesting that the anticipated shift in the economy continues to prove elusive. However with headline inflation at 2% it will be hard for the BoC to signal anything dovish”.
“The market is pricing in a balanced outlook for interest rates, with no probability of a hike or cut priced in. For CAD this is likely to support a somewhat range bound environment; with USD/CAD either side of 1.10”.
“USD/CAD short‐term technicals: mixed—and range bound warns that for near‐term traders there is better risk/reward elsewhere. Support lies at the recent low of 1.0814 while resistance lies at the recent high of 1.0942”.