CAD flat as Oil weakness offsets risk appetite – Scotiabank
|The Canadian Dollar (CAD) is all but flat on the session. Markets may refocus on underlying fundamentals for a moment but broader geo-political tensions remain a risk for the CAD going forward, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/CAD pullback stalls after reaching targets
"Crude Oil prices are lower on the session (and Canadian crude spreads are weakening as pipeline capacity constraints re-emerge), offsetting the improvement in (equity) risk appetite. The CAD’s fair value estimate sits at 1.3794, near yesterday’s spot low and close enough to current pricing to suggest that there is limited upside potential in the CAD in the current environment, all else equal."
"CAD gains extended to the upper 1.37 area yesterday, effectively reaching our short-term technical target. The USD’s snap higher from the intraday low suggests the short-term decline in funds has stalled for now at least."
"Spot gains are struggling to extend through the low/mid-1.38s (200-day MA at 1.3837) and require an extension above 1.3845/50 to point to a return to the 1.39 zone. Support below 1.3780/90, remains 1.3750 and 1.3720."
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.