USD/CAD: Risk/Reward Favors Selling USD/CAD Bounces Against 1.26 Resistance - TD

TD FX Strategy Research notes that Canada's Sep employment report reinforces the narrative that the output gap is closing.  
"While this is one report, it is noteworthy that the trends in the labor market indicate that the output gap is closing and signals further scope for policy normalization over the next six months," TD argues.
"In turn, we continue to like the risk/reward of selling into the USDCAD bounces. We also prefer to hold short USDCAD exposure into the Oct MPR and think 1.26 will remain strong resistance," TD advises.