The Canadian dollar slips but holds range. In the view of economists at Scotiabank, the broader backdrop remains positive for the loonie.

USD to remain firmer as investors look ahead to the Fed outcome

“CAD weakness looks somewhat excessive relative to modest losses in crude and still very supportive spreads.”

“The USD may stay relatively elevated ahead of the FOMC but the fundamental support for the CAD remains strong, in our opinion, and we still rather favour looking to fade modest USD gains.”

“Price action retains a very modest upward tilt but the pattern of trade on the daily chart suggests a brief pause in the broader USD decline ahead of another leg lower (bear flag formation).”

“Resistance is 1.2440/45. Support is 1.2315.”