The Canadian Dollar (CAD) has shed a little ground on the day but is trading more or less unchanged on the session, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/CAD is stabilizing around the upper 1.35 zone
“US/Canada trade talks are progressing—as far as we know— towards an agreement later this month so, presumably, Canada will not be one of the countries getting a letter from President Trump. Finance Minister Champagne said he believes Canada is in position to work out a better deal than other countries because of the scale of the US/Canada trade relationship.”
“Weaker risk sentiment is a headwind for the CAD, however, and is reflected in the slightly higher equilibrium estimate for USDCAD (1.3560) that our model reflects this morning. Canada releases (final) June S&P Global Services and the Composite PMIs at 9.30ET.”
“USD/CAD is stabilizing around the upper 1.35 zone. The broader downtrend in spot remains intact and trend momentum remains USD-bearish across a range timeframes. Those factors should mean limited upside potential in the USD (low/mid-1.36s) in the short run. Support remains 1.3540//50.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
