USD/CAD: There is little to stop additional gains – Scotiabank

Market news

8 August 2023

USD/CAD: There is little to stop additional gains – Scotiabank

Weak risk appetite and softer commodity prices are dragging the CAD lower. Shaun Osborne, Chief FX Strategist at Scotiabank, expects the USD/CAD pair to extend its gains.

Gains through the upper 1.33 area are liable to extend

USD gains through the upper 1.33 area are liable to extend. A significant improvement in the market’s overall mood will be needed to lift that CAD at the moment.

I had expected much better support for the CAD to develop over the past week as spot retested the early July high. But with no clear demand for the CAD emerging, there is little to stop additional USD gains in the short run at least.

The 200-DMA at 1.3453 today offers some, potential resistance to the USD advance ahead of a return to 1.35/1.36.

Chile Consumer Price Index (Inflation) (MoM) registered at 0.4% above expectations (0.3%) in July

GBP/USD: Demand on weakness to or just below 1.27 should help limit losses in the near term – Scotiabank

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