- Analytics
- News and Tools
- Market News
- USD/CAD: Loonie set to strengthen in the coming months – Scotiabank
USD/CAD: Loonie set to strengthen in the coming months – Scotiabank
USD/CAD trends are relatively flat on the session, with the pair trading narrowly around the 1.26 point. Positive underlying fundamentals, tighter Bank of Canada policy and positive seasonal trends suggest growing downside risk for USD/CAD, economists at Scotiabank report.
Clear move under 1.2565/75 to open up further downside
“We do think that firm domestic growth trends, rising interest rates, and firm commodity prices point towards the CAD remaining firm – and strengthening a bit more obviously – in the coming months when seasonal trends tend to be more positive for the CAD.”
“We note that Friday’s close for the USD was the lowest weekly close for spot since late Jan, suggesting that the recent, sideways range trade around the 1.2750 point may be showing signs of breaking down (bearishly for the USD).”
“A clear move under 1.2565/75 would signal more immediate downside risk for the USD.”
“USD rallies remain a sell.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
