USD/CAD: upside favourable? - Scotiabank

Analysts at Scotiabank explained that CAD appears vulnerable.

Key Quotes:

"CAD appears vulnerable as yield spreads widen to fresh multi-month highs with the 2Y U.S.-Canada spread pushing toward 40bpts at levels last seen in late June."

"The broader tone is likely to dominate Tuesday’s NA session and measures of sentiment appear conflicted as we consider Friday’s CFTC data showing a notable reduction in risk to both sides."