USD/CAD neutral near term – Scotiabank

FX Strategist at Scotiabank Eric Theoret sees the pair keeping its neutral stance in the near term, with support in the 1.3020 for the time being.

Key Quotes

“The 2Y U.S.-Canada spread has widened to a two week high at the upper end of its one month range, and the near-term balance of risk hints to a continued (CAD negative) widening”.

“USDCAD’s break of 1.3020 support delivered a fresh multi-month low in the upper 1.29s, however the move was short-lived with considerable support observed around 1.30. The shorter-term charts (2h, 4h, 6h) have completed bullish hammers and a morning star (6h). We look to support at 1.3020 and anticipate near-term gains toward 1.31”.