CAD drifts back to the 1.44 – Scotiabank
|The Canadian Dollar (CAD) has drifted steadily lower since testing the 1.43 area mid-week. The USD is still trading slightly lower on the week, however, adding to last week’s small net loss despite obvious risks to the CAD, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Spot is back to pivoting around the 1.44 point
"BoC DG Gravelle confirmed that the central bank would end its QT program by the middle of the year, in line with previous guidance and revert to “normal course” asset purchases slowly and well before September."
"In other remarks, Gravelle commented that US/Canada trade tensions risked having a 'big, negative' impact on the Canadian economy via higher inflation and slower growth. He said the BoC will detail more of its analysis on the impact of tariffs with the January 29th policy decision."
"Spot is back to pivoting around the 1.44 point. Short-term patterns lean somewhat bullish after the rejection of the 1.43 zone earlier this week but Monday’s bearish close for the USD and signals suggesting USD gains have stalled (if only temporarily) on the weekly chart should bolster USD resistance around the 1.4465 area. Support is 1.4280/00."
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.