CAD holds near low for now – Scotiabank
|There is an uncomfortable mix of internal and external uncertainties facing the Canadian Dollar (CAD) right now. The charts suggest no relief for the CAD, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Uncertainties persist near term
“Perhaps the parliamentary recess will allay some of the market’s concerns, if only temporarily, as PM Trudeau tries to figure out his next move. The CAD is consolidating very close to its recent lows, however, which is hardly ever a positive sign; there is simply no-one looking to fade the slide in the CAD at this point.”
“There is a chance that the CAD picks up a little ground into the end of the year (based on seasonal trends) but investors will want to see clarity in local politics and progress on addressing president-elect Trump’s border concerns early in the new year or the CAD is liable to come under renewed pressure.”
“Spot traded to a minor new cycle high overnight and while the USD has backed off the peak, losses are marginal. The short-, medium– and long-term trend momentum oscillators are aligned bullishly for the USD which suggests only limited potential for the CAD to recover at present. Resistance remains 1.4350 but there is no discernible resistance above that point until the 1.47 area from my point of view. Support is 1.4250/75 and 1.4190/00.”
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.