Forex Flash: CAD may be the most at risk from the fiscal cliff uncertainty – TD Securities

FXstreet.com (Barcelona) - TD Securities analysts consider the CAD as probably the most at risk from the fiscal cliff uncertainty. "We would expect the USD to gain a modest safe-haven bid at least in response to the uncertaintyeven if USD correlations with risk assets have weakened in the past few weeks", wrote analysts Shaun Osborne and Greg Moore, expecting the Canadian economy to quickly feel the impact of slower growth in the US resulting from the uncertainty and the fiscal drag that the cliff implies.

"We think technical signals point to a weaker CAD.USDCAD set a strong short/medium term base last week and the break out from the Nov/Dec consolidation channel implies scope for a repeat of the Sep/Nov rally, targeting 1.0290/1.03 in the next few weeks", they added, pointing to firm support at 0.9885/00 area.