Although markets remain directionless ahead of the EcoFin meeting, the CAD was under pressure earlier after M.Carney has left the BoC to replace BoE’s M.King.
According to Camilla Sutton, Chief Currency Strategist at Scotiabank, “We do not expect the BoC to make a major shift in its tone, leaving it as one of the most hawkish of the advanced economy central banks. As noted in our technical section, technicals for USDCAD have turned increasingly bearish - we are biased to be short. We expect today’s range to fall between 0.9907 and 0.9973”.
“We favour being short at 0.9940, targeting 0.9780, with a stop at 0.9998”, the expert recommends.