The Canadian Dollar (CAD) is marginally softer on the session but holding up better than its major currency peers to the USD’s broader rebound, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
CAD holds consolidation range
“Spot remains essentially range bound as investors await the outcome of the Federal election and assess what the result may mean for Canada’s approach to US trade negotiations. February Retail Sales are expected to fall 0.4% in the month, in line with the preliminary data released alongside the (weak) January report.”
“Recall that sales jumped strongly late last year on the government’s partial tax holiday, front-loading activity to some extent. Tariff concerns also likely weighed on shoppers’ minds. Spot remains in consolidation mode.”
“Short term bear trend momentum has faded, leaving USD/CAD drifting between support around 1.3785/90 and resistance around 1.3900/05. There are some signs from price action that markets are slowly accumulating USD on dips—which can often be a prelude to renewed gains and an accelerated rebound but broader trend strength signals suggest that the USD is still facing quite significant headwinds. Scope for gains remains limited.”
Read the full article here
