Forex Flash: USD/CAD outlook remains bearish – Scotiabank

FXstreet.com (Barcelona) - The cross is trading in a narrow range of only 30 pips on Monday, between the boundaries of 0.9915 and 0.9945, as risk appetite is extending its momentum after improved results of the manufacturing PMI in China and the 17-nation bloc.

Therefore, and according to C.Sutton, Chief Currency Strategist at Scotiabank, "CAD is strong, but immaterially so, still trading within last week's range. A better risk environment, a broadly weaker USD and encouraging PMI releases from China are being offset by concerns that weaker than expected Q3 GDP will soften the hawkish stance at the BoC. We expect Canadian interest rates to be left on hold and the statement to be in line with the October release... Technically, the outlook for USDCAD is bearish, however it will need to break below 0.99 in the near-term for signals to remain in place".