USD/CAD stays neutral short term – Scotiabank

FX Strategist at Scotiabank Eric Theoret noted the pair’s outlook remains neutral in the near term.

Key Quotes

“The 2Y U.S.-Canada spread remains range bound and risk reversals are steady pricing a slight premium for protection against CAD weakness. This week’s NAFTA developments have not driven any meaningful movement in CAD. The recent move in CADMXN provides a clearer picture of market participants’ NAFTA-related concerns. We are neutral CAD as we await a sustained break of the month to date range”.

“Momentum signals are neutral and trend strength is weak as USDCAD continues to consolidate around its 50 day MA (1.2457). USDCAD has yet to deliver a sustained break of its October range roughly bound between the mid-lower 1.24 area and 1.2600. We look to near-term support at 1.2420 and resistance at 1.2520”.

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.