USD/CAD is basically flat as markets await the BoC coverage choice. The economists’ consensus has swung to no change after anticipating a 25bps reduce till late final week, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Pattern momentum oscillators stay bearishly aligned for USD
“However 15 of the 17 submissions to the Bloomberg survey since final Friday have stumped for no change, shifting consensus expectations to a maintain, largely reflecting swaps pricing which anticipates solely 5bps of easing threat. Although policymakers are more likely to sit on their palms this week amid a bunch of uncertainties, their messaging is more likely to be dovish, maintaining the door open for extra easing within the months forward.”
“Dovish-leaning feedback might weigh on the CAD to some extent however until the assertion/press convention bolster market conviction on the timing or scale of cuts, the CAD is unlikely to ease too far. Word the CAD continues to commerce comfortably just a little above estimated truthful worth (1.3791 as we speak). The coverage choice is 9.45ET. Governor Macklem and Senior DG Rogers converse at 10.30ET.”
“Spot is holding a decent buying and selling vary between 1.3700/50, inside Monday’s vary. Whereas the near-term pattern is flat, the general technical image for the USD stays bearish amid a succession of decrease lows and decrease highs. Pattern momentum oscillators stay bearishly aligned for the USD throughout the intraday, every day and weekly research. Minor resistance sits at 1.3750. There may be stronger resistance at 1.3850/60. Help is 1.3680/00.”
