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2 Jan 2014
Flash: Jan traditionally soft for CAD - Scotiabank
FXstreet.com (Barcelona) - Camilla Sutton, FX Strategist at Scotiabank notes that CAD is weak but off its lowest point and trading at its one month average.
Key Quotes
“January is typically a weak month for CAD. Over the last 10‐years, CAD has closed January softer than where it started 8 times, with the average loss 0.6%.”
“This is in line with our forecasts, expecting CAD to weaken over the next six months; whereas the option market (risk reversals) suggest there has been no increase in demand to protect against USD upside, even as the USD is strengthens.”
“There is no domestic data until January 6th, leaving CAD likely shifting with the broader USD.”
“Technically, support lies at the 2013 close of 1.0623; whereas resistance lies at 1.0700 followed by the recent high of 1.0738.”
Key Quotes
“January is typically a weak month for CAD. Over the last 10‐years, CAD has closed January softer than where it started 8 times, with the average loss 0.6%.”
“This is in line with our forecasts, expecting CAD to weaken over the next six months; whereas the option market (risk reversals) suggest there has been no increase in demand to protect against USD upside, even as the USD is strengthens.”
“There is no domestic data until January 6th, leaving CAD likely shifting with the broader USD.”
“Technically, support lies at the 2013 close of 1.0623; whereas resistance lies at 1.0700 followed by the recent high of 1.0738.”