FXStreet (Edinburgh) - In the view of Camilla Sutton, Chief FX Strategist at Scotiabank, the immediate drivers for the Canadian dollar remain the USD, the Fed and crude oil prices.
Key Quotes
“The current 30‐day rolling correlation between CAD and oil is strong at 0.89; while the 90‐day has softened, now at just 0.52”.
“We continue to see oil, the broad USD move and the outlook for the Fed and BoC as core drivers of CAD”.
“Leaving the risk as tomorrow’s panel presentation by Governor Poloz, next week’s Fed decision and the outlook for oil prices”.
“Short‐term technicals: bearish—technical signals continue to warn of USDCAD downside risk. Support and resistance lie at the edges of the recent range of 1.2088 and 1.2328”.