Strategists at Scotiabank remain neutral bearish on the pair in the short-term, allowing for a potential visit to the 1.2550/00 area.
“We remain CAD bulls and suspect that the restraining influence of relative central bank policy softens into the next MPR meeting in July. Narrowing interest rate differentials should deliver added support to CAD as we look to medium-term strength on the basis of improving terms of trade”.
“USDCAD appears set to push back below 1.2600 following a short-lived rally above 200 day MA (1.2622) resistance. Daily momentum indicators remain bearish and DMI’s are confirming. We look to weakness through 1.2580 toward the lower end of the recent range around 1.2550. Additional support is expected at 1.2500 and the mid-Feb low around 1.2450”.
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.