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USD/CAD contained within recent range – TDS

FXStreet (Barcelona) - According to the Research Team at TD Securities, the USD/CAD pair will trade within the 1.1220/ 1.1290 range, and they further caution of probable choppy reactions resulting out of thin liquidity and the OPEC meeting outcome.

Key Quotes

“Funds followed the broader USD trend yesterday, shedding 60 points from its overnight high to settle on a 1.1230/40 range as the dust from the barrage of US data dissipated. It went bid late in the day, closing just below 1.1250.”

“The pair has displayed a relatively wide range overnight, perhaps stemming more from the lack of liquidity than anything else, as it seems to be ignoring what would have been a more natural driver such as the sharp drop in crude oil.”

“The current account balance for Q3 will be the only release today. We are looking for the deficit to narrow from -$11.9 bn to -$11.0 bn, which is marginally more optimistic than the consensus estimate of -$11.2 bn. This should be of little consequence for USDCAD, as the market tends to ignore this figure, despite the persistent deficit.”

“In all, we expect funds to trade within the boundaries of a 1.1220 / 1.1290 range. Although, again, both thin liquidity and the OPEC meeting could trigger some choppy reactions.”

Canada Current Account came in at -8.4B below forecasts (-11.1) in 3Q

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