The CAD is little modified on the session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Spreads are headwind for CAD positive factors
“Yesterday’s transient rally within the USD was shortly reversed, dumping funds again beneath the 1.36 stage the place spot is consolidating. The optimistic danger backdrop is a gentle help for CAD sentiment within the brief run however the uptick in short-term US/Canada spreads and swaps over the previous week or so are an obstacle to additional CAD positive factors, I believe. Estimated truthful worth has edged somewhat decrease this morning to 1.3634.”
“The USD’s failed try to carry positive factors above 1.36 yesterday casts a little bit of a shadow over the short-term chart for USD/CAD. The market is sustaining a minor uptrend, supported by bullish-leaning DMIs on the intraday and each day oscillators however spot closed—and is holding—beneath the 200-day MA (1.3587) yesterday and which may counsel some constraint on USD positive factors for now. Extra rangey commerce between 1.3550/1.3650 appears to be like probably.”
