The Canadian Greenback (CAD) has shed a little bit floor on the day however is buying and selling kind of unchanged on the session, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/CAD is stabilizing across the higher 1.35 zone
“US/Canada commerce talks are progressing—so far as we all know— in direction of an settlement later this month so, presumably, Canada won’t be one of many nations getting a letter from President Trump. Finance Minister Champagne mentioned he believes Canada is in place to work out a greater deal than different nations due to the size of the US/Canada commerce relationship.”
“Weaker threat sentiment is a headwind for the CAD, nevertheless, and is mirrored within the barely increased equilibrium estimate for USDCAD (1.3560) that our mannequin displays this morning. Canada releases (ultimate) June S&P World Providers and the Composite PMIs at 9.30ET.”
“USD/CAD is stabilizing across the higher 1.35 zone. The broader downtrend in spot stays intact and pattern momentum stays USD-bearish throughout a variety timeframes. These components ought to imply restricted upside potential within the USD (low/mid-1.36s) within the brief run. Assist stays 1.3540//50.”
