The Canadian Dollar (CAD) is a subdued performer this morning alongside its commodity cousins (AUD and NZD), which are also posting minor losses against the US Dollar (USD) on the session, notes analyst Scotiabank FX, Shaun Osborne.
It is ready to reach the 1.39+ area
“Commodity FX is ignoring firmer equities, while high beta currencies may be reflecting some spillover from a weaker CNY/CNH after the PBoC surprised markets with a cut in the reverse repo rate to 1W, the first reduction in a year. The CAD focus this week is entirely on the BoC’s policy decision on Wednesday, where a 25bp cut is more or less fully priced in at this point.”
“The CAD’s slide after failing to break 1.36 earlier this month has been relentless, with the CAD managing just one positive session in the past eight trading days. USD gains remain capped in the 1.3750 zone for now, but a break above 1.3750 would suggest further gains towards the 1.38 area in the near term and it could find support at 1.3650/75.”
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.
