USD/CAD: Short-term momentum remains USD bearish – Scotiabank
|The Canadian Dollar (CAD) is little changed and continues to hold its established range, Scotiabank's chief FX strategist Shaun Osborne notes.
Spot continues to hold around support in the low 1.37s
“Solid gains in crude are giving Canadian terms of trade a boost which should be a modest positive for the currency at least—and help keep USDCAD’s fair value estimate tracking slightly lower (to 1.3650 by our estimate this morning).”
“Whether the CAD can take advantage remains to be seen, with external drivers (the broader USD tone, risk appetite) remaining important influences on spot trends and sentiment for now. Positioning (IMM data reflect a still very large net short CAD position) remains a potential positive for the CAD.”
“Spot continues to hold around support (retracement, 40-day MA) in the low 1.37s. While short-term momentum remains USD bearish, the CAD’s failure to make more progress (towards 1.3675) might start to weigh against a further drop in spot in the short run. Resistance is 1.3765/75.”
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.