The Canadian dollar is falling a little today. The economists of Scotiabank analyze the outlook for the USD/CAD pair.
The reduction in spreads favors the CAD.
Weak stocks and crude oil are minor constraints on the CAD in the near term, but some improvement in short-term yield spreads in favor of the CAD this week rather suggests room for a little more strength.
The session’s modest gains so far are moving the USD away from key support (trend and possible trigger for the bearish shoulder-head-shoulder pattern) at 1.3655.
USD gains through 1.3705/1.3710 could modestly extend to 1.3750, although short-term trend oscillators are starting to line up lower for USD, which should really limit the scope for near-term gains.
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.