USD/CAD shows some reluctance to push higher – Scotiabank
|USD/CAD edges marginally higher in rather quiet, month-end trade so far. Economists at Scotiabank analyze the pair’s outlook.
USD retains a clear advantage over the CAD
Passive hedge rebalancing flows may be mildly CAD-supportive if anything, but the sharp widening in US/Canada spreads over the second half of the month remains a drag on the CAD’s broader outlook.
The USD retains a clear advantage over the CAD from a broader perspective, with Wednesday’s gains extending the new year run higher in spot marginally.
A small, inside range (within Wednesday’s range) today does suggest some reluctance to push higher still, however, and a lack of momentum behind the move.
Resistance is 1.3610/1.3620. Support is 1.3540/1.3550.
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