USD/CAD: Near-term risks are tilted to the downside – Scotiabank

USD/CAD is consolidating between 1.3350/1.3450. Economists at Scotiabank expect to see a decline in the pair, but it will be slow to materialize.

Bear trend momentum continues to develop

“The USD undertone remains soft and bear trend momentum continues to develop; but short-term DMI signals are weak, suggesting only moderate downside pressure on spot at present. It should also mean limited upside potential for the USD intraday, however.”

“Look for better selling pressure on minor gains to the low 1.34s.”

“A break of 1.3350 targets 1.3270/75.”