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16 Sep 2015
USD/CAD outlook remains neutral – Scotiabank
FXStreet (Edinburgh) - Eric Theoret, Currency Strategist at Scotiabank, reiterated the neutral view on USD/CAD in the near term.
Key Quotes
“CAD sentiment is constructive as we consider the decline in implied volatility and limited movement in the relative price of options. Relative policy considerations (2Y yield spread) remain range bound”.
“Congestion around 1.3250 has tightened, with intraday ranges over the past few sessions falling to their lowest levels since May 25”.
“Risk is elevated with the potential for a violent breakout of the recent range roughly bound between 1.3120 and 1.3350”.
“Momentum indicators are conflicted and close to neutral, and trend signals are remarkably muted”.
Key Quotes
“CAD sentiment is constructive as we consider the decline in implied volatility and limited movement in the relative price of options. Relative policy considerations (2Y yield spread) remain range bound”.
“Congestion around 1.3250 has tightened, with intraday ranges over the past few sessions falling to their lowest levels since May 25”.
“Risk is elevated with the potential for a violent breakout of the recent range roughly bound between 1.3120 and 1.3350”.
“Momentum indicators are conflicted and close to neutral, and trend signals are remarkably muted”.