USD/CAD faces strong resistance above 1.2880 – Scotiabank
|The pair is seen meeting an important hurdle in the 1.2880 area, according to FX Strategists at Scotiabank.
Key Quotes
“The passing of the U.S.’s NAFTA renegotiation deadline appears to have had a limited impact on the currency, and talks are expected to now extend into 2019. Commodity prices remain elevated and continue to provide a critical source of support for the CAD. Terms of trade are dominating and Bank of Canada rate expectations have firmed considerably with OIS now fully pricing 25bpt hikes for July and October, as well as a 50% chance of an additional hike by the end of the year. Our current USDCAD fair value estimate is close to 1.2480”.
“Momentum signals are neutral and trend strength is muted as USDCAD continues to consolidate around its 50 day MA (1.2827). We highlight the importance of recent support around the 200 week MA (1.2763) and note the absence of additional support between 1.2750 and 1.2600. Near-term resistance is expected above 1.2880”.
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.