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29 Sep 2014
A possible buying opportunity in USD/CAD – BMO
FXStreet (Guatemala) - Stephen Gallo, European Head of Currency Strategy at BMO Capital made reference post London to the swap market in relation to opportunities in USD/CAD.
Key Quotes:
"2yr/5yr swap rate differentials became more supportive for USD/CAD around last week’s weak retail sales print from Canada, and then stayed rather quiet until the second-half of the London session on Friday when they started to move in favour of the USD again”.
“They’ve continued to move in favour of USD/CAD so far today, meaning that a move to 1.1075/1.1125 should probably be viewed as a near-term buying opportunity in the pair."
Key Quotes:
"2yr/5yr swap rate differentials became more supportive for USD/CAD around last week’s weak retail sales print from Canada, and then stayed rather quiet until the second-half of the London session on Friday when they started to move in favour of the USD again”.
“They’ve continued to move in favour of USD/CAD so far today, meaning that a move to 1.1075/1.1125 should probably be viewed as a near-term buying opportunity in the pair."