The story of the week is weakness in USD/CAD as it slides below 1.07. Everyone is playing the ‘where will it end’ game right now. Analysts at TD say there is no reason to expect a turnaround yet while analysts at ScotiaFX say the Bank of Canada is likely increasingly uncomfortable with USD/CAD downside:
We do not expect USDCAD to break below 1.06 and expect that it proves more comfortable trading closer to 1.10. Our year‐end forecast is 1.10; we expect USDCAD’s range to fall between 1.06 and 1.11 into year‐end.
We’re at the lows of the day at 1.0668, watch out for a squeeze lower into the weekend.