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1 Aug 2014
USD/CAD to be impacted by rate differentials - BMO
FXStreet (Guatemala) - BMO Strategists, Stephen Gallo and Greg Anderson explained that interest rate differentials will start to play a larger role in predicting moves in USD/CAD soon.
Key Quotes:
"Given the USD-positive environment we’re in, it seems only logical that interest rate differentials will start to play a larger role in predicting moves in USD/CAD at some point fairly soon".
“There’s no firm confirmation of this yet, but the current position of key interest rate differentials which are all in the USDs favour probably mean any dips in USD/CAD today on weaker than anticipated data will be very shallow."
"1.0850-1.0900 support should hold firm. Unless these data completely undo what everything else this week did for the USD, which is not what our economists expect by any stretch of the imagination, the bigger, exciting move in USD/CAD today is going to be on the topside."
Key Quotes:
"Given the USD-positive environment we’re in, it seems only logical that interest rate differentials will start to play a larger role in predicting moves in USD/CAD at some point fairly soon".
“There’s no firm confirmation of this yet, but the current position of key interest rate differentials which are all in the USDs favour probably mean any dips in USD/CAD today on weaker than anticipated data will be very shallow."
"1.0850-1.0900 support should hold firm. Unless these data completely undo what everything else this week did for the USD, which is not what our economists expect by any stretch of the imagination, the bigger, exciting move in USD/CAD today is going to be on the topside."