Back
31 Dec 2013
Flash: CAD may continue to weaken in the months ahead – TD Securities
FXstreet.com (Córdoba) - The CAD is a currency that has under-performed over the holiday period, and one that the TD Securities team thinks may continue to weaken in the months ahead.
Key Quotes
"Soft Canadian data releases before Christmas keep the focus on the potential for a further moderation in the BoC's policy stance as we look ahead to the New Year".
"The Fed's gradual withdrawal of monetary stimulus is liable to continue while the US economy remain on an even keel, tightening up global USD liquidity and supporting the USD generally; Fed policy may also prove to be something of a headwind for commodities".
"Gold has had its worst year since 1981 this year and the FT reports today that more gloom may be in store for the industry as miners may have to mark down reserves as falling prices make previously viable areas uneconomic".
"We want to get long USD/CAD again soon—the early part of the new calendar year is typically USD-positive from a seasonal perspective—and expect modest weakness to the mid 1.06 area to provide support for USDCAD from through the early part of 2014".
Key Quotes
"Soft Canadian data releases before Christmas keep the focus on the potential for a further moderation in the BoC's policy stance as we look ahead to the New Year".
"The Fed's gradual withdrawal of monetary stimulus is liable to continue while the US economy remain on an even keel, tightening up global USD liquidity and supporting the USD generally; Fed policy may also prove to be something of a headwind for commodities".
"Gold has had its worst year since 1981 this year and the FT reports today that more gloom may be in store for the industry as miners may have to mark down reserves as falling prices make previously viable areas uneconomic".
"We want to get long USD/CAD again soon—the early part of the new calendar year is typically USD-positive from a seasonal perspective—and expect modest weakness to the mid 1.06 area to provide support for USDCAD from through the early part of 2014".