The Canadian Greenback (CAD) is coming into Tuesday’s NA session with a marginal decline vs. the US Greenback (USD) because it continues to commerce defensively within the aftermath of Monday’s broad-based USD rally, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
USD/CAD seems properly supported
“The shift within the outlook for central financial institution coverage has been a drag for the CAD, as markets have light portion of their expectations for near-term Fed cuts whereas sustaining an honest quantity of easing from the BoC. The widening of the 2Y US-Canada yield unfold seems to have taken a pause nevertheless it’s going to seemingly see a response to the 8:30am ET US CPI launch.”
“For Canada, there are not any scheduled releases forward of Wednesday’s constructing permits and Thursday’s manufacturing gross sales information. The Financial institution of Canada’s calendar can be empty. On commerce, developments have been restricted within the aftermath of final Tuesday’s Trump/Carney assembly.”
“Momentum is bullish, as evidenced by the RSI’s climb above 50. USD/CAD seems properly supported because it pushes towards its 200 day MA (1.4018) following its latest break of the 61.8% retracement stage of the September/February rally at 1.3944. The subsequent essential technical stage is the midpoint of the vary round 1.4100 and mid/late February congestion stage round 1.4200. We glance to near-term assist between 1.3900 and 1.3850.”
