Forex Flash: USD/CAD would range-bound near term – Scotiabank
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USD/CAD
FXstreet.com (Barcelona) - The cross is stuck in the 0.9975 region, almost exclusively due to the inactivity in the US markets as the US are celebrating the Thanksgiving Day.
The Loonie has rapidly depreciated against its fellow neighbor after Canadian retail sales rose only 0.1% during September, posting no variation if we strip the automobile sector. Both prints came in below expectations at 0.5%.
In the opinion of Camilla Sutton, Chief Currency Strategist at Scotiabank, "An improvement in market sentiment, generally weak USD and a renewed focus on the potential for the Fed to expand QE3 to include Treasurys in December should support CAD. However, most technicals suggest that USDCAD is somewhat range bound. We expect today's range to be relatively narrow, falling between 0.9934 (the 100day MA) and 0.9994 (the 200day MA)".
The Loonie has rapidly depreciated against its fellow neighbor after Canadian retail sales rose only 0.1% during September, posting no variation if we strip the automobile sector. Both prints came in below expectations at 0.5%.
In the opinion of Camilla Sutton, Chief Currency Strategist at Scotiabank, "An improvement in market sentiment, generally weak USD and a renewed focus on the potential for the Fed to expand QE3 to include Treasurys in December should support CAD. However, most technicals suggest that USDCAD is somewhat range bound. We expect today's range to be relatively narrow, falling between 0.9934 (the 100day MA) and 0.9994 (the 200day MA)".
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