The Canadian Dollar (CAD) is one of the better-performing currencies on the session when looking at overall ground lost versus the USD on the session but it is trading at session lows against the USD as our trading day gears up, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
CAD weak but little changed in low 1.38s
“Wider spreads remain the primary drag on the CAD, as bond and swap spreads extend recent gains on firmer US yields generally and ahead of the BoC policy decision Wednesday. Markets have all but fully priced in a 50bps cut now, leaving the door wide open for the Bank to deliver. Could that mean the CAD gets a ‘sell the mystery, buy the history’ rebound after the fact? USD/CAD fair value is estimated at 1.3840 this morning.”
“The CAD looks soft and vulnerable to more losses on the charts. The only thing in the CAD’s favour is perhaps that this USD move higher is about as overcooked now as the USD sell-off was in August, oscillators suggest. That does not necessarily mean the USD will drop in the near term but it does mean the path higher may be a little harder from here.”
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.