FXStreet (Delhi) – Research Team at TDS, suggest that with the Canadian employment data not released for another week, today’s event allows for a fairly straightforward setup for USDCAD as we anticipate it will follow broader USD moves.
Key Quotes
“In addition to next week’s Canadian employment data, we will be keeping an eye on Tuesday’s international trade report, as the non-energy export component is likely remain more influential on the BoC’s thinking than any given month of employment readings.”
“In contrast to our expectations for USDJPY above, USDCAD may be an exception to our overall expectation that FX markets will be more sensitive to a negative payrolls report today. This, we think, stems from the sharp move lower in USDCAD from the highs above 1.3450 over the last several days. We think this has left positioning among shorter-term players short USDCAD while longer-term accounts may have lightened up on their longs.”
“Technically, we are keeping an eye on initial support around 1.3215/20, while the 1.3170 region may also serve as an attractor ahead of a potential re-test of the 18 September low of 1.3013. On a more USD-positive outcome, initial resistance is likely to emerge just below 1.3300, while 1.3375 may also provide some resistance ahead of the 29 September high of 1.3457.”
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