USD/CAD stays rangebound near term – Scotiabank

Pablo Piovano FXStreet

FX Strategists at Scotiabank expect the pair to continue within the recent sideline theme in the near term.

Key Quotes

“The USD rebound at the start of the week blunts the risks of an immediate drop in the market following last week’s bearish outside range week reversal but that development remains the salient feature of the charts in our opinion and shades the broader outlook for the USD to the downside while the USD remains below 1.30”.

“Short-term patterns suggest a range-bound market, however, with the USD’s gains Monday getting bogged down in the low 1.29 congestion range. Look for 1.28/1.29 (roughly) to persist for now.

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.

AUD/USD sticks to neutral bias above 0.7100 amid cautious markets

AUD/USD holds steady above 0.7100 in the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. The PBOC status quo on Loan Prime Rates also weighs on the Aussie. However, bets on another RBA rate hike continue to underpin the Australian Dollar ahead of the Trump-Xi Summit.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold starts week on the back foot as US Dollar holds firm, Oil decline limits losses

Gold (XAU/USD) starts the week on a bearish note, snapping a two-day winning streak as expectations of additional Federal Reserve (Fed) rate hikes and a firmer US Dollar (USD) limit the upside.

Bitcoin hits $85,000 for the first time in eight months

Bitcoin price reclaims $85,000 on Monday, advancing last week’s 5% recovery toward an eight-month high. The recovery in King Crypto aligns with renewed institutional demand, with Exchange Traded Funds (ETFs) recording $433 million in inflows on Friday.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.