USD/CAD: Loonie trades cheap, rallies to 1.28 an opportunity to sell – TDS

The Canadian dollar is starting to trade at a nice discount, in the view of analysts at TD Securities. They recommend selling USD/CAD on rallies toward the 1.28 level.

Waiting on reflation-lite

“Our dashboard shows a weak but improving fundamental story.”

“MRSI's extreme implied short CAD position has improved, though it remains underweight against other currencies. That said, CAD's trading with a nice discount on the balance of valuation (HFFV and GMPCA) positioning models.”

“We're likely nearing the top in USD/CAD, where we prefer to sell rallies back towards 1.28.”

“The loonie is likely waiting for the return of some form of reflation-lite this fall, with potentially some BoC-inspired carry support.”


Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.


GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.


XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more