USD/CAD: Low/mid 1.29s to hold as loonie finds it difficult to gain ground – Scotiabank

USD/CAD holds near 1.30. Economists at Scotiabank note that the Canadian dollar is unlikely to enjoy gains for now.

Broader USD tone will continue to overshadow the CAD for now

“Weaker stocks and softer oil prices remain headwinds for the CAD and while the BoC policy backdrop remains supportive in broad terms, there is little opportunity for the CAD to differentiate itself from the USD ahead of the key Jackson Hole event at the end of the week at least.” 

“USD-bullish, short-term trend indicators suggest the bar to a strong CAD rebound is quite high at the moment.”

“USD losses may be limited to the low/mid 1.29s.”

“Resistance is 1.3020/50.”