The CAD is little changed on the session and continues to hold in the trading range established prior to the holiday break, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

USD/CAD is USD-bullish on a clear push above 1.4430

“US/Canada terms spreads have stabilized and a dearth of domestic news—economic or political—is helping steady the CAD for now. Scope for any CAD rebound is very limited at present, however, and still elevated implied volatility (3m vol is holding just under 7%) reflects underlying concerns about the risks facing the CAD in the short run.”

“There is no obvious change in the CAD’s technical condition. Spot is consolidating and the pattern of trade clearly keeps technical risks tilted towards a resumption of the USD’s appreciating trend in the near future. Resistance is 1.4430 (USD-bullish on a clear push above here). Support is 1.4350.”