USDCAD: Rise to the mid/upper-1.35s unlikely to run out of momentum – Scotiabank

USDCAD easily regained a 1.35 handle yesterday. Economists at Scotiabank do not expect the Loonie to strengthen against the US Dollar.

Weak risk appetite

“The USD’s rebound through 1.35 undoes a lot of the good work the CAD had done earlier in the week to strengthen versus the USD and shows just how fickle market sentiment can be at the moment.”

“A swift return to sub-1.3495 levels (today) could restore some of the downward momentum in the market but there are only tentative signs at this point that the USD rise to the mid/upper-1.35s is running out of momentum.”

“Support intraday is 1.3500/10. Resistance is 1.3595/05.”