An unwind in some USD longs was largely anticipated, and the recent move is a correction rather than a complete reversal, so the bias is for an eventual move higher, TD’s Mazen Issa writes in a note to clients.
USD/CAD has endured a significant correction that has neutralized potential gains coming up shy of achieving bank’s 1.3650 target, Issa says
A move back above 1.3300 would be required to maintain confidence in this view while caution is warranted after Trump’s press conference lacked economic policy guidance, analyst says
President-elect did reiterate a handful of USD-positive policies, so risks still lie to the upside
A concern at this juncture is that while positioning in USD/CAD is a further extension in USD unwinds could leave the USD vulnerable with current spot levels not far from bank’s current 1.2900 stop loss, Issa says
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