USD/CAD: Little appetite to drive the pair significantly higher at this point – Scotiabank

USD/CAD trades flat. Economists at Scotiabank analyze the pair’s outlook.

Loonie’s mood is hardly encouraging

USD/CAD’s rally peaked a few ticks or so below 1.35 on Tuesday. The CAD mood is hardly encouraging though, with the Loonie losing ground easily and only making slow progress when conditions are positive.

Risks will tilt to the downside somewhat if the USD continues to trade little changed through the close today as it will suggest a little more strongly that USD gains have stalled. 

Support is 1.3390/1.3300. 

Resistance is 1.3400/1.3450.