USD/CAD gains have extended to the upper 1.25s. Economists at Scotiabank expect the key resistance at 1.2590 to cap the pair.

USD/CAD to correct lower towards 1.2485/75 on a dip below 1.2540

“We had anticipated gains through the upper 1.25s – which might include a retest of key resistance (former support) at 1.2590. That may still happen but we expect strong resistance there and note that intraday price action is suggesting a minor top/reversal may be developing. 

“Intraday losses below 1.2540 should see USD gains over the past couple of sessions correct a little more (back to 1.2475/85).”