USD/CAD remains range-bound in the near term – TDS

FXStreet (Edinburgh) - Analysts at TD Securities see spot clinging to the consolidative pattern in the near term.

Key Quotes

“Despite a “positive” surprise in yesterday’s Q2 real GDP print, the knee-jerk reaction lower in USDCAD was quickly faded. This speaks to the point we made yesterday that even if GDP were surprise to the upside relative to market expectations, it would not be a compelling case to sustainably sell USDCAD”.

“Reconciling the gap between spot and FV is more difficult to do this time around as the market environment has changed appreciably with greater volatility and growing concerns of a China hard landing that has created a risk-off tone for the better part of the last 3 weeks”.

“And, despite a pop higher in crude oil in recent days—a phenomenon that may in part be due to a lack of liquidity—that would have otherwise suggested a lower value for USDCAD, has now receded again. Such an environment does not bode well for the CAD so we recommend sticking to the range for now”.