The Canadian Dollar (CAD) is unchanged on the session after shrugging off domestic developments with ease yesterday, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
CAD holds onto Wednesday’s gains
“The BoC rate cut was not a surprise and while the policy spread over the Fed is now 125bp, markets expect the Fed to quickly catch up with the BoC’s easing process in the coming months. Meanwhile, the end of the NDP’s “supply and confidence” support agreement with the minority Liberal government failed to move the DAC. The agreement was supposed to last until mid-2025.”
“The breakup does not necessarily hasten the next federal election, but the Liberals will need support from the NDP or the Bloc on a case-by-case basis to pass legislation and/or avoid losing a confidence vote. Parliament returns on September 16. The DAC’s near-term trends depend primarily on the US jobs report.”
“Markets are unlikely to move too much over the next 24 hours, but USDCAD technical sentiment is a bit softer after spot fell sharply from resistance at the upper 1.35 zone yesterday and broke near-term trend support/consolidation, now nearby resistance, at 1.3530/35. Intraday weakness below 1.3495 may see USD losses leak a bit further in the near term.”
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.
