USD/CAD stays neutral near term – Scotiabank
|Eric Theoret, FX Strategist at Scotiabank, reiterated the pair’s outlook is expected to stay on the neutral side in the short term.
Key Quotes
“The near-term balance of risk appears neutral-positive, with steady drivers and a clear improvement in the broader tone as risk reversals fade the recent build in the premium for protection against CAD weakness”.
“USDCAD continues to consolidate around the mid-1.27 area representing the first major retracement (23.5% at 1.2739) of the May-July decline”.
“Momentum signals are neutral and trend indicators are muted. We await a break of either 1.2650 or 1.2780”.
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