CAD can’t hold technical break versus the USD – Scotiabank
|The CAD has eased back after probing the low 1.43 area yesterday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
CAD slips back after failing to hold technical break
“A positive risk backdrop and some meaningful narrowing in short-term US/Canada spreads would perhaps be enough to give the CAD a bit more of a lift in different times. Our fair value estimate for USD/CAD has dipped to 1.4219 this morning while the spot rate moves in the opposite direction.”
“Tariff concerns are keeping CAD sentiment on the defensive ahead of the presidential inauguration next week. Canada releases Housing Starts data at 8.30ET. BoC DG Gravelle is giving a speech on ‘Managing the Bank of Canada’s balance sheet’. Prepared comments drop at 12.30ET. There will be an audience Q&A but no remarks to the media after the event.”
“The CAD could not sustain—at least today, so far—the break under major USD trend support that started to develop yesterday. The USD is trading higher but spot is back in the sideways range that has held since midDecember. Resistance is 1.4450/75. Support is 1.4350 and 1.4300/05.”
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