USD/CAD neutral/bearish near term – Scotiabank
|The pair is expected to meet contention in the 1.2500/1.2450 in the short term horizon, noted FX Strategists at Scotiabank.
Key Quotes
“Elevated commodity prices are providing CAD support, dominating as a nearterm driver and delivering an important offset to bearish, extended interest rate differentials. This week’s domestic calendar is relatively busy, with all eyes on Wednesday’s Bank of Canada policy decision (widely expected hold) and MPR forecast update ahead of Friday’s retail sales and CPI data. We anticipate a constructive tone from the Bank of Canada, acknowledging improvement on the NAFTA front and last week’s BOS results. Speculative (CFTC) CAD positioning is modestly bearish and risk reversals are showing a relatively low premium for protection against CAD weakness. We remain bullish CAD looking to medium-term strength through the spring/summer period”.
“USDCAD is consolidating within a relatively tight four session range roughly bound between the mid-1.25s and the 200 day MA (1.2625)”.
“We look to a bearish resolution and highlight the absence of near-term support ahead of 1.2500. Additional support is expected at 1.2450”.
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.