USD/CAD to plunge to the 1.22 level sooner than expected – Scotiabank
|The CAD has made marginal progress to probe the mid-1.23 zone. Economists at Scotiabank expect the USD/CAD pair to slump to the 1.22 mark in the next few weeks.
Potential congestion in the 1.2275/1.2325 range
“We continue to forecast 1.22 for year-end but feel the USD/CAD risks hitting that point in the next few weeks before perhaps rebounding somewhat in December.”
“The pro-risk mood is CAD supportive alongside high energy prices. Note, however, that the 2Y spread, while still CAD-supportive, did narrow some 5bps yesterday. That may impede the CAD’s progress somewhat.”
“There is little, obvious support for the USD until the low 1.22s (76.4% Fibonacci support at 1.2229) but we can see some potential congestion in the 1.2275/1.2325 range that may slow USD losses.”
“Resistance is 1.2340/45 and 1.25.”
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.