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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD refreshes multi-week top as focus now turns to US CPI
AUD/USD climbed to over a three-week high during the Asian session on Wednesday. A softer-than-expected US PPI report supported prospects for deeper Fed rate cuts and dragged the USD to over a one-week low on Tuesday. This, along with the RBA's hawkish stance and the risk-on mood, continues to underpin the Aussie ahead of US CPI later today.
NZD/USD remains strong, with all eyes on RBNZ rate decision
The New Zealand Dollar extends the rally on the weaker Greenback on Wednesday. Further optimism in the risk sentiment has maintained the US Dollar under pressure in the previous sessions and created a tailwind for the pair. The signs of stronger demand from China also underpin the Kiwi.
Gold consolidates near record highs
Gold stays in a consolidation phase below $2,470 after rising more than 1.5% on Monday. Although the benchmark 10-year US Treasury bond yield continues to stretch lower, the improving risk mood makes it difficult for XAU/USD to preserve its bullish momentum.
Bitcoin shows signs of recovery as Bitgo begins final Mt. Gox distribution
Bitcoin is up over 3% on Tuesday as investors reacted positively to the final lap of Mt. Gox supply pressure. Meanwhile, Glassnode data reveals investors have resumed accumulation, hoping to see Bitcoin record higher prices.
RBNZ expected to keep key interest rate unchanged amid increasing rate-cut talk
The Reserve Bank of New Zealand is set to maintain its key interest rate at 5.50% on Wednesday. The August policy decision appears to be a “close call” between a hold and a cut, as inflation expectations fall. The New Zealand Dollar’s fate hinges on the RBNZ policy action, updated forecasts and Governor Orr’s words.