USD/CAD: Trades sideways in the mid-1.3700 area – Scotiabank

The Canadian Dollar (CAD) is a relative outperformer in Friday's session, says Shaun Osborne, Chief FX Strategist at Scotiabank

USD/CAD short-term trend momentum is weak

“Despite broader US Dollar (USD) strength and weak stocks, the CAD is a relative out-performer on the session. Volatility in Europe is helping support the CAD at the margin, with EUR/CAD easing more than 1% on the week.”

“Minor USD gains through the overnight session are showing signs of stalling out in the mid/upper 1.37 area and Tuesday’s weak close for the USD remains a net negative for USD/CAD at the moment.”

“Short-term trend momentum is weak, suggesting more range trading, with Tuesday’s 1.3790 high likely to help keep USD gains in check. Support is 1.3690/00.”