USD/CAD is redefining recent range resistance at 1.3600 - Westpac

Sandeep Kanihama FXStreet Contributor

Tim Riddell, Research Analyst at Westpac, suggests that a triumvirate of a Trump dairy war, tariffs on lumber and softening oil prices has seen CAD slide over the past two weeks and has coincided with a sharp swing to a net short position from non-commercial accounts.

Key Quotes

“Renegotiating NAFTA could also undermine the still vulnerable nonresource sector, the sector that seems to be of most concern to the BoC.”

“Against these negative factors, a resurrection of Trump’s other domestic growth and tax proposals could support CAD as could a shift in discussions in front of key OPEC negotiations in Vienna on 25th May. Given the shift in positioning to a large net short, any such positive results could see CAD squeeze, despite it currently remaining vulnerable, especially to Trump’s NAFTA stance.”

“USD/CAD is redefining recent range resistance at 1.3600 and could extend towards 1.3850 before retracing back to the upper end of its recent range.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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