USD/CAD made a significant turnaround: staying long - TDS

Analysts at TD Securities explained that after a knee-jerk move lower following the BoC rate hike, USD/CAD made a significant turnaround.

Key Quotes:

"Given the escalation in global trade tensions and a curve already reflecting "gradual" tightening suggests that the CAD's return profile remains asymmetrically tilted to the downside. We stay long USD/CAD."

"USD/JPY continues to defy traditional cross-asset correlations with an impulsive break through trend resistance located near 111.50/60."

"The JPY continues to trade in sympathy of Asian EMFX."

"Though our HFFV estimate suggests USD/JPY should be trading lower from here, we are mindful that this break could heighten positioning risks and keep the pair elevated for now."

Despite a massive 12m bbl inventory draw, WTI crude (-4.9%) faced a delayed reaction to the escalation in trade tensions, while news that a severe Libyan outage was coming to an end also dragged Brent crude (-6.1%) sharply lower.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.