Flash: USD not in a one-way street, USD/CAD – TD Securities

FXstreet.com (London) - Research teams at TD Securities say’s markets seem to be increasingly pre-occupied with the impression of whether QE tapering is on or off these days.

The team was adding that the slide in US longer-term yields yesterday served as a warning that the USD is not in a one-way street heading north. For instance, they mentioned that the month-end flows are expected to be USD-negative and may add to near-term pressure on USD/CAD but their bias there remains positive and they remain broadly constructive on the USD’s outlook. Ignoring the day-to-day noise in the markets, Federal Reserve comments signal that a reduction in asset purchases remains quite possible later this year, if the data support it.