USD/CAD bullish above 1.3050 – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, sees the perspective for the pair as bullish while above 1.3050.

Key Quotes

“Relative central bank policy remains the most important near-term driver for CAD, as we consider the contrast between a neutral BoC and a hawkish, normalizing

Fed. We note the impressive widening in the 2Y U.S.-Canada yield spread, breaking above 30bpts to levels last seen in late March”.

“We are biased to USDCAD gains and look to a break of the recent range roughly bound between 1.29 and 1.32. USDCAD appears to have formed a symmetrical triangle over the past three sessions and these formations are typically resolved via continuation”.

“We are bullish above 1.3050 and note the potential for support at 1.3020. A break of 1.32 would shift the focus to 1.33 and 1.35”