USD/CAD steadies in upper 1.38s. Economists at Scotiabank expect the pair to struggle to surpass the 1.38/39 area.

USD gains look technically stretched

“The good news for the CAD is the short-term spreads may not widen that much more from here – especially if jobs and wage data today remain upbeat – but if equity market headwinds persist, the CAD will have little opportunity to rebound.”

“Price action is hardly indicative of a peak or even a reversal developing. But while trend momentum signals are aligned bullishly for the USD across a range of timeframes, the USD rally is looking very extended across the intraday and daily studies especially. That may help limit USD gains to the 1.38/1.39 range that capped the USD late last year.”

“USD support is 1.3750.”