USD/CAD is steady near 1.38. Economists at Scotiabank analyze the pair’s outlook.
Hawkish BoC deliberations
BoC’s summary of deliberations dwelt on the ‘considerable concern’ around core inflation, noted that some senior policymakers thought that rates would need to rise again and mulled over the potential for the neutral rate to drift higher.
Intraday price action suggests that the upside move in spot is stalling around 1.38 points but trend momentum remains USD-positive on the six-hour chart and more pronounced weakness (below 1.3750/1.3760 intraday) should signal a more definite short-term top. At least.
Resistance is 1.3810/1.3820.
