Loonie underperforms after USD/CAD losses base in the low 1.36s. Nevertheless, Loonie is unlikely to suffer a substantial drop, Shaun Osborne, Chief FX Strategist at Scotiabank, reports.

Broader range trading seems likely to persist for now

“Material gains in the CAD still look a struggle but I also feel that the CAD is unlikely to fall too far at the moment, with a lot of bad news already factored in.”

“While the CAD is finding it very hard to make material gains, the pattern of short-term trade since mid-March has been one of (very) mild improvement in the CAD tone. Still, broader range trading seems likely to persist for now.”

“Support is 1.3625/30. Resistance is 1.3725/50.”