- USD/CAD rally capped at familiar resistance.
- USD/CAD now awaits FOMC.
USD/CAD spiked on the back of oil but has run into some offers into the close. Currently, USD/CAD is trading at 1.2872, up 0.13% on the day, having posted a daily high at 1.2894 and low at 1.2812.
FOMC Preview: big noise, little substance?
USD/CAD managed a push over the 1.12880 resistance and is holding in 8th Dec-tops territory at least in a bullish trend that is showing little signs of a meaningful correction at this juncture, albeit just a session or two away from the FOMC outcome where a rate hike is fully priced in.
Domestic risks ahead?
Meanwhile, the domestic risk is limited ahead of Thursday’s speech from BoC Gov. Poloz, on the topic of ‘Issues keeping the Governor awake at night’. "NAFTA negotiations are scheduled to continue through Friday and near-term risk centres on Wednesday’s Fed meeting. The balance of risk appears to favor continued consolidation," noted analysts at Scotiabank
USD/CAD levels
USD/CAD has yet to break out of its range from late October, with movement roughly bound between 1.2620 and 1.2920. "Momentum is neutral and trend strength is muted. We look to near-term support between 1.2800 and 1.2780," the analysts at Scotiabank argued
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