CAD holds in upper 1.35s – Scotiabank
|Lower US yields and narrower US/Canada spreads are weighing on USD/CAD, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
CAD is supported by narrower US/Canada spreads
“Spot is pressuring the upper 1.35 area where the USD has found support on a number of occasions over the past couple of sessions. Firmer risk appetite and higher crude are adding to CAD support at the margin. USD/CAD fair value has edged lower to 1.3592 this morning, reflecting the sweep of factors shifting back into the CAD’s favour.”
“Wholesale Sales for July are expected to fall 1.1% in the month, in line with the Statcan flash estimate released with the soft (-0.6%) June data. Spot trends look soft on the short-term chart and the USD’s move back under the 200-day MA continues to give the daily chart a softer look.”
“But the USD is generating support around 1.3565 on the short-term chart and trend indicators remain bullishly aligned on the intraday and daily DMI oscillators. The CAD will have to put in a bit more effort—i.e., crack support at 1.3565—to improve and have a run at the low 1.35s. Resistance is 1.3605/25.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.