USD/CAD neutral-to-bullish near term – Scotiabank

By FXStreet FXStreet (Edinburgh) – The pair keeps the neutral to bullish prospects in the near term, suggested Eric Theoret, Currency Strategist at Scotiabank.

Key Quotes

“Oil prices remain the most important near-term consideration for policymakers at the BoC, as they seek to navigate the risks of the recent oil price shock”.

“Easing expectations have moderated considerably in response to the oil price rally, with 12-month OIS currently pricing in a 52% chance of a cut—from 78% on August 26th. We expect no changes to BoC policy at next week’s meeting and look to a hold at 0.50%”.

“Momentum indicators are conflicted, bullish trend signals are moderating, and USDCAD is once again attempting to make a material break below its 21 day MA (1.3144), having failed to do so in mid-August”.

“Monday’s completion of a bearish outside reversal candle would typically be considered a bearish signal, shifting the focus to further decline. We look to near term support at 1.3120 followed by 1.3080, and see resistance at 1.3250”.
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Source:: FX Street