USD to CAD: Buy on Dips say CIBC

USD to CAD: Buy on Dips say CIBC

29 June 2016, 18:52
Vasilii Apostolidi
Giving his latest strategic forecast for the US dollar vs Canadian dollar, Jeremy Stretch at CIBC Markets writes: 

Despite seeing the CAD trading on the defensive in yesterday’s session the  failure of USD CAD to close above the 100-day MAV, (1.3087) is significant, at least in the short run.

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While we maintain our conviction of USD CAD extending back towards 1.36/37 within the next couple of months, the current modest rebound in risk sentiment, which has also encouraged an oil bounce, prompted a test towards 1.2965/75 support.

Only should we see a close below 1.2950 are we likely to see the correction extend back towards the 50-day MAV at 1.2871.

However, amidst expectations of a soft patch in Q2 domestic growth, allied to the expectations of risk off tendencies being set to persist, as Brexit uncertainties remain, favours looking to buy dips. 

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