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Flash: USD/CAD upside still looks plausible – TD Securities

FXstreet.com (New York) - The USD/CAD failed to hold on to the early bid tone yesterday as US data disappointed and weighed on the big dollar broadly, suggests the TD Securities Team.

Key quotes

“The USD/CAD dips continue to be met with firm support, however, and the underlying trend higher remains intact.”

“We do not expect any significant policy indications to emerge from Deputy Governor Murray’s comments today (or the audience Q&A that will follow—there is no official press conference). BoC policy makers meet September 4th and rates are widely expected to remain on hold.”

“The set up on the short-term chart remains USD-positive even if the USD rally lost a little short-term momentum yesterday. The heavy tone of price action that developed Friday has not translated into material weakness so far. Losses are contained and short-term support around 1.0495/00 looks well defined. Intraday gains through 1.0534 should see 1.0565/70 retested.”

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