USD/CAD demand/support between 1.0700/25 - BMO

FXStreet (Guatemala) - Stephen Gallo, European Head of Currency Strategy at BMO Capital explained that they look for good demand for USD/CAD between 1.0700 and 1.0725 heading into Wednesday’s BoC statement and July MPR.

Key Quotes:

“…FX investors of various time horizons most likely to position ‘neutral’ to ‘short’ CAD leading into those events”.

“The key variables to watch for USD/CAD are the extent of ‘risk-on/risk-off’, which the CAD is positively correlated with, and EUR/CAD”.