Forex Flash: US data may be USD/CAD-positive this week – TD Securities

The US will be on focus in the days ahead (retail sales tomorrow, CPI and IP on Friday) as Canada calendar is empty for the rest of the week. “Positive US data is now constructive for the USD, so TD’s forecasts more active than expected consumer activity and slightly higher inflation suggests data developments this week could be USD/CAD-positive", wrote analyst Shaun Osborne and Greg Moore.

TD Securities analysts see USD/CAD momentum gradually fading as the pair consolidates well within the range of the past two trading days: "Without a catalyst it should be hard to crack the key 1.0250 and 1.0315 levels for now", they wrote, pointing to 1.0215/20 initially in case of a break lower, while 1.0330/40 is the next topside level to watch.