The USD/CAD pair struggles to gain any meaningful traction during the Asian session on Monday and remains confined in a familiar range held over the past week or so. Spot prices currently trade around the 1.3965-1.3970 region, nearly unchanged for the day amid mixed fundamental cues.
Risk aversion is dominating as we head into Thursday’s NA session with a distribution of relative currency performance that is seeing notable strength from the havens Swiss Franc (CHF) and Japanese Yen (JPY) and weakness from the growth-sensitive commodity currencies NOK, NZD, and AUD.
USD/CAD has fallen significantly in recent weeks. However, this was due to pronounced USD weakness rather than CAD strength. If the US dollar recovers, we are likely to see higher levels again.