20 Feb 2015
CAD rallies, but within monthly range – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares the outlook and key technical levels for USD/CAD, noting that the core risk for CAD lies in Yellen and Poloz’s speech.
Key Quotes
“Increasingly the focus for CAD traders is over the outlook for monetary policy, making next week’s testimony by Chair Yellen and speech by Governor Poloz core risks. Expectations for a second interest rate cut in Canada have remained relatively constant over the last week, with the market pricing in at least one more cut over the next six months. This combined with oil prices that have stabilized but could still be pressured lower, leave CAD vulnerable.”
“USDCAD short‐term technicals: mixed—likely reflecting the range bound environment that USDCAD has been trading within.”
“Support lies at 1.2380 with resistance at 1.2504 (the 21‐day MA); however neither of these levels are particularly strong.”
Key Quotes
“Increasingly the focus for CAD traders is over the outlook for monetary policy, making next week’s testimony by Chair Yellen and speech by Governor Poloz core risks. Expectations for a second interest rate cut in Canada have remained relatively constant over the last week, with the market pricing in at least one more cut over the next six months. This combined with oil prices that have stabilized but could still be pressured lower, leave CAD vulnerable.”
“USDCAD short‐term technicals: mixed—likely reflecting the range bound environment that USDCAD has been trading within.”
“Support lies at 1.2380 with resistance at 1.2504 (the 21‐day MA); however neither of these levels are particularly strong.”