USD/CAD: CAD holds range for now – Scotiabank

FXStreet Insights Team FXStreet

The FOMC decision failed to shake the CAD out of its broad range. But the CAD has shaken off yesterday’s late session wobble to regain the mid-1.35s this morning amid broader USD weakness and firmer stocks and commodities, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

CAD gains a cent from overnight low on the USD

“Spreads, which have been widening in the USD’s favour, should perhaps steady at least. Note USD/CAD is trading a little below estimated fair value (1.3583) this morning. BoC External Deputy Governor Nicolas Vincent speaks to the Sherbrooke Chamber of Commerce from around 08:15ET. His speech is titled ‘Monetary policy decision-making: behind the scenes’ but I doubt the comments will tell us much more than we already know.”

“USD/CAD pushed higher through to the mid1.36s in early Asian trade before sliding a cent over the balance of the session. Minor gains from the European session low around 1.3540 are not yet strong enough to suggest that a base for the USD is developing.”

“Trend momentum signals are leaning USD-bearish on the short-term chart and a low close for the USD on the day (which would confirm a bearish outside reversal) would suggest building downside risks for spot and a potential retest of the late August low at 1.3440.”

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FXStreet Insights Team

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