USD/CAD short term stance stays neutral – Scotiabank

Pablo Piovano FXStreet

FX Strategist at Scotiabank Eric Theoret noted the pair is extending its sideline theme around 1.3100 amidst a broad-based neutral picture.

Key Quotes

“Oil prices are up on OPEC headlines, delivering modest CAD support as market participants consider calls to ‘extend or deepen’ production cuts at the next meeting in May. The 2Y U.S.-Canada yield spread remains a drag for CAD, hovering around 43bpts at the mid-point of its range from late November. Options markets suggest a continued erosion in the premium for protection against CAD weakness, with some risk reversals testing fresh 2017 lows at levels last seen in mid-December”.

“USDCAD remains range bound, with a fourth consecutive week of consolidation around 1.31. Momentum signals are neutral, trend signals have softened, and the 9 day MA has flattened out. We look to support in the 1.3020-1.3000 area and resistance at 1.31”.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Low
1H	Bearish	Neutral	Shrinking
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	Low
1W	Bearish	Neutral	High
Updated Feb 14, 21:30 GMT

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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