USD/CAD: Weakness below 1.3750/1.3760 needed to signal a more definitive short-term peak – Scotiabank

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 the topside move in spot is stalling around the 1.38 point but trend momentum remains USD-positive on the six-hour chart and more obvious weakness (below 1.3750/1.3760 intraday) is needed to signal a more definitive short-term peak at least.

Resistance is 1.3810/1.3820.