USD/CAD: Little changed on the day – Scotiabank

The CAD is trading close to Friday’s closing level and resisting the bounce in the USD that has followed Friday’s US jobs data, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

CAD holds below 1.3585/95 resistance for USD

“Positive risk appetite is helping the CAD steady, with global stocks in the green and crude oil modestly firmer on the session. The steady CAD and slightly firmer MXN suggests something of a “buy North America” mood across markets but these trends tend to be fleeting.”

“Friday’s Canadian employment data were near expectations in headline terms but the composition of job gains was weak (dominated by part-time positions) and the uptick in the unemployment rate has added to speculation that the BoC could pick up the pace of easing in the months ahead.”

“The CAD is little changed on the day but short, medium and long-term price signals are all leaning bullish after Friday’s sharp swings in the market. Key resistance remains 1.3585/95 where the 200-day MA converges with the range lows for the USD from earlier this year, ahead of the push into the low 1.36s. Support is 1.3550 and 1.3520.”