Back
28 Jul 2015
USD/CAD in range pre-FOMC – TDS
FXStreet (Edinburgh) - Strategists at TD Securities evaluated the potential outcome from tomorrow’s FOMC meeting.
Key Quotes
“USDCAD has pivoted around the 1.30 mark for the past few sessions. This is above our daily fair value estimate (~1.2930) but there is little impetus for funds to be swayed with markets awaiting the Fed meeting tomorrow”.
“As we noted yesterday, we look for the Fed to sound incrementally more hawkish as the growth backdrop has improved and EZ risks have subsided”.
“Perhaps a bigger issue is how the Fed perceives risks around the China stock market meltdown and whether they will be concerned about a blowback against growth”.
“As such, we are not convinced yet that the statement tomorrow will be a smoking gun for September hikes but instead think that the Minutes next month will offer a much more fruitful discussion of that risk”.
Key Quotes
“USDCAD has pivoted around the 1.30 mark for the past few sessions. This is above our daily fair value estimate (~1.2930) but there is little impetus for funds to be swayed with markets awaiting the Fed meeting tomorrow”.
“As we noted yesterday, we look for the Fed to sound incrementally more hawkish as the growth backdrop has improved and EZ risks have subsided”.
“Perhaps a bigger issue is how the Fed perceives risks around the China stock market meltdown and whether they will be concerned about a blowback against growth”.
“As such, we are not convinced yet that the statement tomorrow will be a smoking gun for September hikes but instead think that the Minutes next month will offer a much more fruitful discussion of that risk”.