USD/CAD: Scope for a free-fall to the 1.22 level ahead of year-end – Scotiabank
|The CAD is having a good October as it has posted a solid 2.5% gain on the USD so far. Economists at Scotiabank see USD/CAD downside potential to the low 1.22s.
Rallies to run out of steam around the mid-1.24s
“If the USD manages to steady around 1.2365/70 into this week, a modest correction could develop. We expect USD gains to remain limited to the low/mid 1.24s, however, with daily and weekly trend momentum signals aligned bearishly for the USD.”
“We think USD/CAD can print a 1.22 handle ahead of year end.”
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