The CAD has pulled back after testing the low 1.43 area yesterday, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
CAD pulls back after failing to hold technical breakout
“A positive risk backdrop and a significant reduction in short-term spreads between the US and Canada would perhaps be enough to give the CAD a little more momentum at other times. Our fair value estimate for USD/CAD has fell to 1.4219 this morning while the spot rate moves in the opposite direction.”
“Tariff concerns keep CAD sentiment on the defensive ahead of the presidential inauguration next week. Canada releases Housing Starts data at 8:30ET. BoC CEO Gravelle to give speech on ‘Managing the Bank’s Balance Sheet Canada’ Prepared comments will be posted at 12:30ET. There will be a question and answer session with the audience but there will be no media comments after the event.”
“The CAD was unable to sustain—at least today, so far—the breakout under the main trend support of the USD that began to develop yesterday. The USD is trading higher but the spot rate has returned to the sideways range that has held since mid-December. Resistance is 1.4450/75. Support is 1.4350 and 1.4300/05.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
