The Canadian Greenback (CAD) is coming into Friday’s NA session flat vs. the USD because it consolidates across the midpoint of this week’s vary, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
RSI drifts again to impartial ranges round 50
“Yield spreads stay in focus as markets think about the newest run of soppy US information and their implications for Fed coverage, providing up the potential for a pause within the current widening that has been a near-term headwind for the CAD. The stabilization in oil costs can also be welcome and serving to to regular our FV estimate for USD/CAD, which now stands at 1.3970.”
“Friday’s home launch calendar is proscribed to the worldwide securities transactions information for March (8:30am ET) and there are not any main releases scheduled forward of Tuesday’s CPI. BoC Gov. Macklem can also be scheduled to talk subsequent Thursday, on the sidelines of the G7 assembly in Banff. The most recent countertrend restoration in USD/CAD appears to be like to have misplaced momentum.”
“This week’s vary has revealed appreciable resistance above 1.4000 with help noticed round 1.3900. The RSI has drifted again to impartial ranges round 50, indicating a lack of momentum. The 200 day MA (1.4021) stays an essential degree to look at, by way of upside threat, given USD/CAD’s incapability to interrupt above it this week. Current congestion seems centered across the pivotal 61.8% retracement of the September-February rally.
