The Canadian Greenback (CAD) is up marginally vs. the US Greenback (USD) and persevering with to underperform its G10 friends for a second consecutive session, buying and selling with the broader pattern however with strikes of a smaller magnitude, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
RSI struggles to increase above 50
“The current widening in yield spreads seems to have taken a pause, providing the CAD a reprieve as markets await the discharge of home knowledge into the tip of the week. Wednesday’s home calendar is proscribed to constructing permits for March, forward of Thursday’s housing begins and manufacturing gross sales.”
“The Financial institution of Canada’s calendar can also be empty and markets are nonetheless roughly pricing a few 25bpt fee cuts by December. The near-term vary seems to be outlined by final week’s Trump/Carney assembly lows and the USD’s reduction rally highs noticed earlier this week.”
“The newest vary now seems to be sure between final week’s lows round 1.3750 and this week’s short-lived highs above 1.4000. The 200 day MA (1.4019) seems to have offered vital near-term resistance as effectively. The RSI has struggled to increase above 50 and is now wanting decidedly impartial.”
