CAD was little changed during the session and remains within the trading range established before the holiday break, notes Shaun Osborne, chief currency strategist at Scotiabank.
The USD/CAD pair is bullish against the USD after a clear rise above 1.4430
“Currency spreads in the U.S. and Canada have stabilized, and the lack of domestic news – economic and political – is helping to stabilize the CAD for now. However, the scope for any CAD rebound is currently very limited, and the still elevated implied volatility (3m volume remains just below 7%) reflects fundamental concerns about the risks facing CAD in the near term.”
“There are no obvious changes in the technical condition of CAD. The spot is consolidating and the trade structure clearly maintains technical risks tilting towards a resumption of the USD appreciation trend in the near future. Resistance is at 1.4430 (up against USD after a clear push above). Support is at 1.4350.”
