According to Tim Riddell, Research Analyst at Westpac, USD/CAD is likely to remain range bound, but the pressures of both trade spats with US and slippage in the oil complex could force a redefining of recent range resistance at 1.3600.
“The spectre of Trump’s tweets and policy focus shifting towards trade with Canada have seen a sharp reversal in CAD’s post-BoC policy meeting strength.”
“The prospect of a US/Canada “dairy war” has highlighted the dependency of the Canadian economy on its southern neighbour. A renegotiation of NAFTA could undermine the still-vulnerable nonresource sector, the sector that seems to be of most concern to the BoC.”
“Any further pullback in the strength of the oil complex would also expose the recently firm resource sector in Canada. A WTI slide below 50.00 could trigger a deeper fall in CAD.”
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 securities. 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 Forex 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.