USD/CAD: Fed hangover leaves CAD in a tight range, for now - Scotiabank

Analysts at Scotiabank explained that the CAD is quiet, trading in a tight range around its 100 day MA, consolidating Wednesday’s impressive Fed-driven rally. 

Key Quotes:

"Relative central bank policy remains dominant as market participants assess the outlook for Fed tightening following Wednesday’s meeting. The Fed’s three-hike 2017 flight path remains unchanged, and policy divergence is set to continue with a BoC expected to remain on hold into H2 2018."

"Wednesday’s decline in U.S. yields appears to have been short-lived, and spreads are once again widening in a CAD-negative manner. 

We continue to forecast CAD weakness into the end of Q2."