USD/CAD: Trades little changed on the day – Scotiabank
|The Canadian Dollar (CAD) eased in early Asian trade but has recovered to trade little changed on the day. It’s a busy week for Canadian data reports, Scotiabank’s chief FX strategist Shaun Osborne notes.
Busy week for Canadian data reports
“The BoC’s Q2 Business Outlook Survey is out today, along with (a bit earlier) Manufacturing and Wholesale Sales. But CPI tomorrow and Retail Sales at the end of the week will perhaps have more influence on CAD sentiment. Narrower US/Canada spreads over the past month have helped lift the CAD modestly but spot has held recent ranges.”
“The CAD looks fairly valued in the low 1.36s and that might be about the best we can expect for the CAD for now. The CAD is building up some positive technical momentum. Spot closed lower on the week Friday for a fifth week running. Intraday and daily DMI signals are tilting USD-bearish.”
“But major support sits at 1.3590/00 and Thursday’s strong intraday rebound suggests that the short-term base for the USD remains solid, for now. Resistance is 1.3650/55 and 1.3750/55. CAD-supportive DMIs (currently) suggest CAD losses should remain limited in the short run. A clear push under 1.3590 targets a drop in the USD to the 1.3450/00 range. Major trend support sits at 1.3460.”
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