USD/CAD well supported near 1.3000 – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, noted the solid support area around the 1.3000 handle.

Key Quotes

“A look at the typical drivers of the CAD’s performance—commodities broadly, crude specifically and US/Canada rate spreads—shows that usually strong correlations with spot are relatively weak at the moment—especially spreads and WTI”.

“The CAD might not too much bounce from a recovering crude oil market at this point. But softness might not matter too much for a market that looks to be rangetrading around 1.30/1.31 either”.

“USDCAD has found solid support on dips to the 1.3000/10 area this week but has also encountered good selling interest on strength to the 1.3140/50 zone to establish a well-defined, sideways range”.