Forex Flash: USD/CAD less likely of rising to 1.0300 – TD Securities
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USD/CAD
FXstreet.com (Barcelona) - According to analysts at TD Securities, investors seem reluctant to commit to a strong view one way or the other at the moment, even with the VIX index 10-point plunge and the 5-year high in the S&P 500.
"There underlying mood in the market seems to be one of consolidation as investors consider the outlook for US fiscal and monetary policy as well as the prospects (slim at the moment) for further policy adjustments in the Eurozone (ECB policy meeting Thursday)", wrote analysts Shaun Osborne and Greg Moore, expecting commodity currencies to extend the modest out-performance seen so far today.
Osborne and Moore are less biased for a rise to 1.0300 as they were before the holidays: "That is still possible but looks a less probable near-term prospect considering the heavy net sell-off in funds last week. For now, we look for support in the 0.9825/35 area and for resistance in the 0.9925/35 zone", they wrote, recommending buys on dips while 0.9825 holds.
"There underlying mood in the market seems to be one of consolidation as investors consider the outlook for US fiscal and monetary policy as well as the prospects (slim at the moment) for further policy adjustments in the Eurozone (ECB policy meeting Thursday)", wrote analysts Shaun Osborne and Greg Moore, expecting commodity currencies to extend the modest out-performance seen so far today.
Osborne and Moore are less biased for a rise to 1.0300 as they were before the holidays: "That is still possible but looks a less probable near-term prospect considering the heavy net sell-off in funds last week. For now, we look for support in the 0.9825/35 area and for resistance in the 0.9925/35 zone", they wrote, recommending buys on dips while 0.9825 holds.
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