The Canadian Greenback (CAD) is gentle, buying and selling at recent lows and plumbing ranges final seen in late Could as market contributors reply to dangers associated to commerce and think about their implications for the BoC, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Commerce coverage uncertainty stays a core concern for the BoC
“Feedback from each President Trump and PM Carney have pushed again on expectations for an settlement by the August 1 tariff deadline. Commerce coverage uncertainty stays a core concern for the BoC, as conveyed by Gov. Macklem in Wednesday’s publish determination press convention. A dovish maintain as delivered, and the BoC stays attentive to draw back dangers.”
“This week’s central financial institution occasions have delivered a blow to the CAD’s fundamentals, widening yield spreads in a CAD-negative method. Our USD/CAD FV estimate has climbed into the low 1.37s (1.3715 particularly). Close to-term home threat lies with the 8:30am ET month-to-month GDP launch for Could.”
“USD/CAD is extending its push greater with a sixth consecutive day of features. The RSI is bullish and pushing above 60 however stays shy of the overbought threshold at 70, leaving ample room for additional upside. There aren’t any main resistance ranges forward of the 61.8% retracement of the Sept-Feb rally at 1.3944. We glance to a near-term vary certain between 1.3800 help and 1.3900 resistance.”
