The pair could prolong the upside bias to the 1.3500 area, according to Strategists at TD Securities.
Key Quotes
“Souring trade relations and data slippage leave the CAD’s return profile asymmetrically tilted lower”.
“The leg higher in USDCAD has coincided with our HFFV estimate, suggesting room to price in an additional risk premium in the pair”.
“Passing on a July hike might do more harm than good for CAD. Even with a hike, USDCAD dips should find firm support. We have no qualms about a return to 1.35 before reassessing spot’s risk/return profile”.
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