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USD/CAD to be driven by domestics this week - TD Securities

FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities noted that USD/CAD staged an impressive rally last week.

Key Quotes

"USD/CAD staged an impressive rally last week, recovering from Tuesday’s stall andWednesday’s tumble back to the low 1.08s to break through the 61.8% retracement resistance from the March/July drop at 1.1046, which had proved an effective cap since April."

"This week there will be plenty of domestic drivers to digest in addition to external factors, such as the Fed meeting. As noted above, today we get Existing Home Sales for August, and the rest of the week will also bring July Manufacturing Sales, International Securities Transactions, and August’s CPI."

"Furthermore, Governor Poloz will speak tomorrow in Drummondville, QC, on ``The role of a floating exchange rate in the Canadian economy and in the Bank’s policy framework.'' A press conference is scheduled after the speech at 2 p.m. Although his speech will likely reiterate the usual lines that the exchange rate is not a policy target for the central bank and that a stronger currency, while detrimental for exports, makes capital goods imports cheaper — hence favoring investments in production capacity, it still bears watching it closely."

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