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28 Jul 2014
USD/CAD short-covering to come - TD Securities
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities explained that USD/CAD nosed higher early Friday and then took off a bit more meaningfully as stops were triggered through the upper 1.07s
Key Quotes
“Given that Friday afternoon’s CFTC data showed speculative accounts had built net CAD longs up to +20k contracts—not that significant in the overall scheme of things but still the biggest bet on CAD appreciation since early 2013—we have to think that there may be a little more USD/CAD short-covering to come”.
“A sustained push through the low/mid 1.08s (200-day MA at 1.0832) in the next day or so will be more than uncomfortable for CAD bears and would perhaps force the more resilient CAD shorts to cover."
Key Quotes
“Given that Friday afternoon’s CFTC data showed speculative accounts had built net CAD longs up to +20k contracts—not that significant in the overall scheme of things but still the biggest bet on CAD appreciation since early 2013—we have to think that there may be a little more USD/CAD short-covering to come”.
“A sustained push through the low/mid 1.08s (200-day MA at 1.0832) in the next day or so will be more than uncomfortable for CAD bears and would perhaps force the more resilient CAD shorts to cover."