FXStreet (Edinburgh) – Eric Theoret, Currency Strategist at Scotiabank, argued the stance of the pair remains on the neutral camp in the near term.
Key Quotes
“Domestic manufacturing sales, international securities transactions, and CPI will be important, however policy considerations will likely dominate as we look to BoC Deputy Governor Cote’s speech on Wednesday, scheduled to be delivered just ahead of the Fed”.
“The Fed events (policy decision, statement, economic projections, and press conference) will be most important in terms of their influence on the broader tone, with a positive, risk supportive reaction providing for CAD strength and vice versa in the event of a negative reaction”.
“Momentum indicators are conflicted and trend signals are muted, the result of a relatively narrow trading range with USDCAD roughly bound between 1.3120 and 1.3350 since August 25th”.
“Support, on a closing basis, continues to be observed at the 21 day MA (1.3215) and we note that recent gains have been restrained above 1.3280”.
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