USD/CAD short-term hurdle aligns at 1.2780/1.2820 – Scotiabank
|FX Strategist at Scotiabank Eric Theoret noted the pair’s stance remains on the neutral side for the time being, while initial resistance is expected in the 1.2780/1.2820 band.
Key Quotes
“Yield spreads remain somewhat bearish for CAD, with the 2Y U.S.-Canada testing fresh four month highs. Oil prices appear to be retracing Tuesday’s decline and are providing a modest offset. NAFTA headline risk is set to remain elevated into the weekend and early next week. Risk reversals suggest a continued erosion in the premium for protection against CAD weakness”.
“USDCAD has yet to break out of its range from late October. Momentum is muted and trend strength is weak. We continue to highlight the importance of near-term resistance between 1.2780 and 1.2820 with support at 1.2720 and nothing major ahead of 1.2620”.
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.