Forex Flash: CAD should track risk appetite (which looks pessimistic) - TD

FXstreet.com (San Francisco) - Considering the fundamental drivers of risk sentiment in FX in the weeks ahead, China remains a key focal point. According to Greg T. Moore, FX Strategist at TD Securities, "the CAD should be left following the broader direction of risk appetite for the time being," he says in a weekly research note. He also notes that, given the potential for more disappointing Chinese data, "we don't see many opportunities for risk sentiment to sustain much optimism," which leaves TD Securities "still biased toward USDCAD lift for now."

USDCAD last trades around 0.9775 heading into the weekly close, poised to finish the week practically unchanged as it consolidates below at 23.6% Fibonacci retracement (1.0444/0.9631 decline).