The Canadian Greenback (CAD) ended final week on a comfortable word amid rising geo-political tensions and has eased a bit additional over the weekend to commerce again to close 1.38, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret word.
USD/CAD upside potential is restricted in the intervening time
“The comfortable CAD efficiency final week was tilting dangers in direction of some further weak point within the brief run however the CAD decline dangers working on a bit additional now. The USD is stretching away from our honest worth estimate (1.3642) for funds this morning, suggesting the driving force of CAD weak point just isn’t clearly elementary whereas the CAD’s indifferent relationship with crude oil stays intact.The USD closed out final week in optimistic technical form in opposition to the CAD.”
“Web good points on the week delivered a bullish exterior vary week on the chart for the USD and good points as we speak by means of resistance within the mid-1.37s suggests the advance could push on to the low/mid-1.38 space within the brief run at the very least. Development momentum research are extra blended on account of the USD’s rise over the previous few days. However nonetheless bearish longer run research recommend upside potential is restricted in the intervening time. Assist is 1.3745/50 and 1.3695/00. Resistance is 1.3860 and 1.4015.”
