The Canadian Dollar (CAD) is little changed against the USD on the day, with the spot holding close to Monday’s close in the low 1.35 zone, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
CAD remains close to fair value on wider US-Canada spreads
“CAD’s momentum towards the low 1.34 zone last week has steadily reversed after yield spreads widened in favor of the USD. CAD remains generally consolidated between the low/mid 1.34 zone and the mid of 1.36 right now. The spot is trading close to its fair value estimate (1.3546) today.”
“The USD’s steady gains from last week’s low have recovered about half of last September’s decline in USDCAD from the 1.3647 peak. Momentum is leaning USD-bullish but appears relatively weak. “There are more near-term USD gains through the 1.35 high zone, but broader sideways trading in spot trading below 1.3650 is likely to remain intact for now.”
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.
