The Canadian Dollar (CAD) continues to range trade, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
CAD holds range after CPI implies on hold BoC
“A mild pick up in Canadian inflation yesterday helps maintain the outlook for BoC policy to remain on hold for the moment at least and possibly for some time. PM Carney commented yesterday that negotiations with the US will intensify but seemed to concede that tariffs are likely to remain a part of the landscape for Canada as the ‘commercial landscape globally has changed’.
“While US/ Canada spreads have narrowed a little this week, commodity prices/terms of trade have weakened somewhat. Along with the broader rebound in the USD, factors driving the CAD have shifted a little against the CAD, nudging our fair value estimate up to 1.3626.”
“Spot is firm, near the top of the recent trading range but short-term price trends remain rather flat and the USD still has some work to do to flex a bit more sustainably. USD resistance is 1.3740/50 and, firmer, at 1.3800/10. Support is 1.3650/70.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.