USD/CAD is trading little changed around the 1.37 point. Economists at Scotiabank highlight that seasonal patterns turn more positive for the Loonie in the second quarter. 

USD/CAD remains in a fairly orderly sideways range

“It’s worth reiterating that the seasonal backdrop does turn more positive for the CAD in Q2 (Q1 is typically poor for the CAD, as has been the case this year) and Apr in particular tends to be a weak month for USD/CAD (down 1.1% on average over the past 25 years).” 

“The reality is that USD/CAD remains in a fairly orderly sideways range and, if anything, there is a modest downward tilt to prices from the mid-March highs in the 1.3800/50 area.”

“The rejection of support around 1.3650 does reinforce support at the point but it will take a push back above 1.38 to generate a stronger, bullish impulse from here.” 

“Intraday resistance is 1.3725/50.”