Forex Flash: USD/CAD, little appetite for a much lower USD - TDS (Barcelona) - With USD/CAD last at 1.0237, about flat for the week, and retracing from Tuesday's fresh 8-month highs at 1.0303, Toronto based FX Research Team at TD Securities believe “there is clearly little appetite in the market for a much lower USD at the moment,” the analysts say, adding: “The underlying trend higher in USD/CAD remains strong and deeply-entrenched in the market, as we keep saying.”

“We think the risk of a modest pull-back at least remains,” they continue, “but the scale of the turn lower in funds should remain limited. Absent clear signals of a major reversal in the market, we have to think that corrections lower will be limited to the high 1.01/low 1.02 area,” the team concludes.