USD/CAD needs to push on through 1.3585/1.3590 to see gains develop a little more – Scotiabank

FXStreet Insights Team FXStreet

USD/CAD is retesting the mid-February high at 1.3590. Economists at Scotiabank analyze the pair’s outlook.

Loonie likely to remain soft for now

The Canadian Dollar is likely to remain soft for now, with little fundamental incentive for the CAD to strengthen, given the recent widening in US/Canada interest rate differentials.

Solid gains on the day have reinvigorated short-term trend strength oscillators in the USD’s favour but the overall trend in spot through February remains flat and the USD will need to push on through 1.3585/1.3590 to see gains develop just a little more through to the low/mid 1.3600s.

Support is 1.3540/1.3550.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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