USD/CAD: More losses to the mid-1.3400s on a move back below 1.3540 – Scotiabank

USD/CAD little changed in the low 1.3500s. Economists at Scotiabank analyze the pair’s outlook.

Holding above 1.3540 suggests scope for a push on to the low 1.3600s

Short-term drift in the USD is finding some support around 1.3530 intraday, limiting corrective losses in the USD. Still, the USD’s drop back under the 1.3540 Fibonacci resistance point does put a bit of a question mark over the sustainability of this week’s pop higher in spot that might only be resolved when we see where the market closes out the week.

Holding above 1.3540 suggests scope for a push on to the low 1.3600s; back below and we may see more USD losses to the mid-1.3400s.

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