The Canadian Dollar (CAD) is trading just below the 1.36 mark as traders await the Fed, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

CAD is little changed ahead of FOMC

“The BoC’s meeting minutes may not provide a lot more insight into the policy outlook than we know already. Inflation is slowing in line with BoC forecasts and while Q3 growth is likely to be well short of the Bank’s high expectations, the rationale for more aggressive policy moves is not clear to me at this point.”

“There is no change in USD/CAD’s technical condition. Spot continues to pivot narrowly around the 200-day MA (1.3587), with the USD finding it impossible to translate positive momentum on the intraday and daily charts into more obvious progress.”

“Short-term technical resistance remains 1.3635 (38.2% retracement of the USD’s August decline) and 1.3695 (50% Fibonacci). Support is 1.3550 (minor, last Monday’s low) and 1.3465.”