The Canadian dollar (CAD) is moderately firmer on the session as the USD retreats below 1.36 towards the high 1.35s, notes Shaun Osborne, chief FX strategist at Scotiabank.
CAD remains in the upper zone of 1.35
“Factors have turned a bit less favorable for the CAD over the past week and falling terms of trade amid weaker commodity prices are a headwind for the CAD. The CAD’s small gains today are at odds with my fair value model, which indicates an estimated breakeven for spot at 1.3657.”
“Intraday trends are largely dependent on external developments—US data results, equity markets—with no domestic data on the horizon. US CPI came in lower than expected, so USD/CAD traded back above 1.36.”
“Short-term price signals suggest that USD upside momentum has stalled, but with minor losses holding in the 1.3585 area—the 200-day moving average and USD resistance earlier this week—the short-term uptrend remains intact. USD will need to trade back below 1.3545 to alter the short-term trend dynamics at this point, I think. Otherwise, USD corrective gains risk extending deeper into the mid/high 1.36s.”
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.
