USD/CAD is redefining recent range resistance at 1.3600 - Westpac
|Tim Riddell, Research Analyst at Westpac, suggests that a triumvirate of a Trump dairy war, tariffs on lumber and softening oil prices has seen CAD slide over the past two weeks and has coincided with a sharp swing to a net short position from non-commercial accounts.
Key Quotes
“Renegotiating NAFTA could also undermine the still vulnerable nonresource sector, the sector that seems to be of most concern to the BoC.”
“Against these negative factors, a resurrection of Trump’s other domestic growth and tax proposals could support CAD as could a shift in discussions in front of key OPEC negotiations in Vienna on 25th May. Given the shift in positioning to a large net short, any such positive results could see CAD squeeze, despite it currently remaining vulnerable, especially to Trump’s NAFTA stance.”
“USD/CAD is redefining recent range resistance at 1.3600 and could extend towards 1.3850 before retracing back to the upper end of its recent range.”
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.